[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-302733-105":53,"doc-detail-302733-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","no-tax-on-overtime-fact-sheet","No-Tax on Overtime - Fact Sheet","","This fact sheet outlines the federal tax deduction available for qualified overtime compensation starting in the 2025 tax year. It provides critical information regarding eligibility for W-2 employees, excluding independent contractors and rail carrier workers. The document details annual deduction limits of $12,500 for single filers and $25,000 for married couples filing jointly, while explaining the phase-out mechanism for higher earners. Furthermore, it defines qualified overtime specifically under the Fair Labor Standards Act and clarifies that these deductions are applicable only to federal taxable income, explicitly excluding Social Security, Medicare, state, and local taxes. The benefit is scheduled to conclude after the 2028 tax year, making it a time-bound financial consideration for eligible employees under current guidelines.",{"@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":51,"@type":70,"position":76},"https://docshare.wps.com/template/general/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/no-tax-on-overtime-fact-sheet/302733/",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/no-tax-on-overtime-fact-sheet/302733.png","ImageObject",442,249,{"name":88,"@type":89},"Cart","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-21","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":73},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"Who is eligible to claim the overtime tax deduction?","Question",{"text":108,"@type":109},"Only W-2 employees qualify for this benefit; independent contractors and employees working for rail carriers are not eligible.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What is the maximum annual deduction amount?",{"text":113,"@type":109},"Eligible employees can deduct up to $12,500 annually for single filers and $25,000 for married couples filing jointly, subject to phase-out thresholds.",{"name":115,"@type":106,"acceptedAnswer":116},"Does this deduction apply to state or local taxes?",{"text":117,"@type":109},"No, the deduction applies only to federal taxable income and does not cover Social Security, Medicare, state, or local taxes.","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},302733,1790014789,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":50,"category_name":51,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":73,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":9,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":4},18829141979164,"https://eur-avatar.wpscdn.com/davatar_6f874abed73319feea01a86fa6f0fab8","WHO QUALIFIES?  \n Only W-2 employees are covered.  \n Anyone working as an independent contractor is not eligible.  \n The benefit phases out for those making more than:  \n $150,000 (Single)  \n $300,000 (Married Filing Jointly).  \n Employees who work for rail carriers do not qualify for the deduction.  \n The benefit will end with the 2028 tax year.  \nHOW DOES THE DEDUCTION WORK?  \n Starting with the 2025 tax year, Employers must provide workers with a W-2 that lists qualified overtime compensation.  \n Employees may deduct that qualified overtime from their federal taxable income.  \n Eligible employees can deduct up to:  \n $12,500 annually (Single)  \n $25,000 annually (Married filing jointly)  \n Applies to overtime earned on or after January 1, 2025.  \n The deduction goes down $100 for every $1,000 over the threshold.  \n Example: If you made $152,000, you can only deduct $12,300 max.  \nWHAT IS QUALIFIED OVERTIME COMPENSATION?  \n Employees may only deduct overtime compensation required under the Fair Labor Standards Act (“FLSA”),  \n Requires that employers pay overtime at time-and-a-half for all hours worked over 40 in a workweek.  \n Employees may NOT deduct:  \n Overtime earned under a state law requirement;  \n Overtime earned under a collective bargaining agreement, except for FLSA overtime after 40 hours/week.  \n Shift differentials, weekend premiums, or other differentials not required by the FLSA.  \nCAN OVERTIME BE DEDUCTED FOR STATE AND LOCAL TAXES?  \n ❌ No. The deductions do not apply to Social Security and Medicare taxes, state taxes, and local taxes.  \nProduced by OPEIU Local 2  \n\n| |  [governmentaffairs@ibew.org](governmentaffairs@ibew.org) |  202-728-6046 | | 900 7th Street NW Washington, DC 20001 |  [IBEWGov.org](IBEWGov.org) | |\n| --- | --- | --- | --- | --- | --- | --- |","cbCaipq89HWsdduY","https://ap.wps.com/l/cbCaipq89HWsdduY","pdf",1507632,"English","# Who Qualifies for the Deduction\n# How the Deduction Works\n# Qualified Overtime Compensation Definition\n# State and Local Tax Implications","[{\"question\":\"Who is eligible to claim the overtime tax deduction?\",\"answer\":\"Only W-2 employees qualify for this benefit; independent contractors and employees working for rail carriers are not eligible.\"},{\"question\":\"What is the maximum annual deduction amount?\",\"answer\":\"Eligible employees can deduct up to $12,500 annually for single filers and $25,000 for married couples filing jointly, subject to phase-out thresholds.\"},{\"question\":\"Does this deduction apply to state or local taxes?\",\"answer\":\"No, the deduction applies only to federal taxable income and does not cover Social Security, Medicare, state, or local taxes.\"}]","No-Tax on Overtime - Fact Sheet | PDF",1789796428]