[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-304797-105":53,"doc-detail-304797-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","fs-2026-13-fact-sheet","FS-2026-13 - Fact Sheet","","Fact Sheet FS-2026-13, dated August 2026, updates frequently asked questions about the federal income tax deduction for qualified overtime compensation (commonly called “No Tax on Overtime”). It revises most prior questions, removes 2025-only material, and clarifies eligibility, limits, and timing. Coverage and exemptions under the FLSA are expanded, including special considerations for federal employees. The document also details reporting and tax information requirements for Forms W-2 and 1099 series, plus federal income tax withholding procedures related to qualified overtime compensation.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/fs-2026-13-fact-sheet/304797/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/fs-2026-13-fact-sheet/304797.png","ImageObject",442,249,{"name":88,"@type":89},"Aurelia","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-28","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":47},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What does the deduction for qualified overtime compensation cover?","Question",{"text":108,"@type":109},"The deduction is an income tax deduction for certain individuals paid qualified overtime compensation required under section 7 of the Fair Labor Standards Act (FLSA). It is available whether the individual itemizes or takes the standard deduction, and non-FLSA overtime is not eligible.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How much is the deduction, and are there income limits?",{"text":113,"@type":109},"The deduction is up to $12,500 per individual tax return ($25,000 for a joint return). It is reduced when modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers).",{"name":115,"@type":106,"acceptedAnswer":116},"How must qualified overtime compensation be reported and withheld?",{"text":117,"@type":109},"The FAQs address reporting requirements for qualified overtime compensation on Form W-2 and related 1099 forms, and include federal income tax withholding procedures. They also require separate reporting on Form W-2 to claim the deduction.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},304797,1790308871,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":47,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":47},1099514068365,"https://ap-avatar.wpscdn.com/avatar/10000253d8d9f28188e?_k=1776742907772140068","Updates to questions and answers about the new deduction for qualified overtime compensation  \nFS-2026-13 , August 2026  \nThese FAQs supersede earlier FAQs that were posted in FS 2026-01 on Jan. 23 , 2026.  \nThis Fact Sheet updates frequently asked questions for qualified overtime compensation (commonly referred to as No Tax on Overtime) .  \nThe updates are as follows:  \n• Updates throughout, including adding an index, renumbering certain FAQs, and making clarifying revisions to most questions.  \n• Deletes information that was applicable solely to the 2025 taxable year.  \n• Provides clarification on the limits and timing of the qualified overtime compensation deduction.  \n• Provides additional information on coverage and exemptions under the FLSA.  \n• Provides detailed information on Form W-2, Form 1099-MISC, and Form 1099-NEC requirements applicable to employers and payors of qualified overtime compensation.  \n• Adds information on federal income tax withholding procedures related to qualified overtime compensation.  \n• Adds information on the requirement that qualified overtime compensation must be separately reported on Form W-2 to claim the deduction.  \n• Provides more detailed information on issues applicable to federal employees.  \nThese FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, these FAQs may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs have not been published in the Internal Revenue Bulletin, they will not be relied on or used by the IRS to resolve a case. Similarly, if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’stax liability. Nonetheless, a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax. Any later updates or modifications to these FAQs will be dated to enable taxpayers to confirm the date on which any changes to the FAQs were made. Additionally, prior versions of these FAQs will be maintained on [IRS.gov](IRS.gov) to ensure that taxpayers, who may have relied on a prior version, can locate that version if they later need to do so.  \nMore information about reliance is available on [IRS.gov.](IRS.gov. These FAQs were announced in IR-)[ These FAQs were announced in](IRS.gov. These FAQs were announced in IR-)[ ](IRS.gov. These FAQs were announced in IR-)[IR-](IRS.gov. These FAQs were announced in IR-)[ ](IRS.gov. These FAQs were announced in IR-)[2026-88](2026-88.)[.](2026-88.)  \nBackground  \nThe One, Big, Beautiful Bill Act (OBBBA), P. L. 119-21, added a new deduction for qualified overtime compensation. Notice 2025-69 clarified for individuals how to determine the amount of their deduction for qualified overtime compensation for the 2025 tax year.  \nThe income tax deduction for qualified overtime compensation is available to certain individuals who are paid overtime compensation under section 7 of the Fair Labor Standards Act (FLSA) .  \nSpecial rules apply to employees in the Federal Government who are covered by FLSA regulations issued by the Office of Personnel Management. For more information see Federal employee issues.  \nThese FAQs were coordinated with the Department of Labor and the Office of Personnel Management.  \nBelow are answers to some questions about the deduction for qualified overtime compensation.  \n•  Topic A: The basics  \n•  Topic B: FLSA overtime-eligibility  \n•  Topic C: Reporting qualified overtime compensation on Form W-2 and Form 1099-NEC or 1099-  \nMISC  \n•  Topic D: Federal income tax withholding from wages  \n•  Topic E: Information for employers  \n•  Topic F: Information for employees  ","cbCaidf2orpVuHjX","https://ap.wps.com/l/cbCaidf2orpVuHjX","pdf",276217,13,"English","# Topic A: The basics\n## Q1. What is the deduction for qualified overtime compensation?\n## Q2. What is the deduction amount? Are there limits to the deduction?\n## Q3. When is qualified overtime compensation paid for purposes of the deduction?\n# Topic B: FLSA overtime-eligibility\n## Q4. Who is an FLSA overtime-eligible employee?","[{\"question\":\"What does the deduction for qualified overtime compensation cover?\",\"answer\":\"The deduction is an income tax deduction for certain individuals paid qualified overtime compensation required under section 7 of the Fair Labor Standards Act (FLSA). It is available whether the individual itemizes or takes the standard deduction, and non-FLSA overtime is not eligible.\"},{\"question\":\"How much is the deduction, and are there income limits?\",\"answer\":\"The deduction is up to $12,500 per individual tax return ($25,000 for a joint return). It is reduced when modified adjusted gross income (MAGI) exceeds $150,000 ($300,000 for joint filers).\"},{\"question\":\"How must qualified overtime compensation be reported and withheld?\",\"answer\":\"The FAQs address reporting requirements for qualified overtime compensation on Form W-2 and related 1099 forms, and include federal income tax withholding procedures. They also require separate reporting on Form W-2 to claim the deduction.\"}]","FS-2026-13 - Fact Sheet | PDF",1789817418]