Overtime pay can be deducted on tax returns for certain individuals
After Congressional approval, the President has signed into law the Overtime Pay Tax Relief Act of 2025 (H.R.561). This is a federal income tax deduction, not a complete exemption from all taxes on overtime. The Bill allows eligible workers to deduct up to $12,500 of overtime pay ($25,000 for joint filers) from their federal taxable…









