The U.S. Department of Labor issued a batch of four opinion letters on Jan. 5 cautioning employers on the role of certain performance-based bonuses and pre-shift “roll call” time in overtime ...

Elizabeth Guevara is a personal finance reporter who explains the world of business and economics and how it impacts your finances. She joined Investopedia in 2024. Investopedia / Photo Composite by ...

Preparing a 2025 tax return is likely to take more time, as workers who received tips or overtime pay in 2025 figure out what qualifies for new tax breaks. IRS gives some very specific examples in ...

The "No Tax on Overtime" provision in the One Big Beautiful Bill Act (OBBBA) creates a temporary federal income tax deduction for qualified overtime earned in tax years 2025 through 2028. For this ...

President Donald Trump's "big beautiful bill" added the "no tax on overtime" deduction for 2025 returns. Certain workers can deduct up to $12,500 for single filers or $25,000 for married couples ...

The overtime deduction is an option whether a taxpayer claims the standard deduction or itemizes deductions, such a deducting mortgage interest. It's a mixed bag when it comes to what employers are ...

In its June 12, 2026, decision in Guilbeau v. Schlumberger Technology Corporation, the U.S. Court of Appeals for the Fifth Circuit provided ...

Photo courtesy Indianapolis (IN) Fire PIO. Many individuals work long hours—far beyond the standard 40-hour week. Starting with tax year 2025, a tax provision in the One Big Beautiful Bill Act (OBBBA) ...

Alan West, an hourly worker at Tom Pitzer Trucking, was thrilled to learn his overtime pay might not be taxed. "No tax on overtime — a lot more money in my pocket," West said. But as tax filing season ...

A new deduction allows workers to subtract part of their overtime wages from their 2025 taxable income, lowering some taxpayers' bills in April. However, workers will need to calculate their deduction ...

What extra cash comes your way after your shift goes into overtime and what amount of overtime pay qualifies for a tax deduction on 2025 federal income tax returns, oddly enough, can amount to two ...