The IRS has released a set of FAQs to answer questions about eligibility, reporting, and limits for the new, temporary ...

Workers keep hearing about "no taxes on overtime in 2026," but the reality is more complicated: President Trump has promoted the idea, yet available reporting shows only proposals and commentary, not ...

Extra work hours in the week can mean extra pay. Now, it can also mean a new tax benefit you can claim on your return come tax time. Starting Jan.

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 ...

Millions of Americans can now keep more of their overtime earnings courtesy of language included in President Donald Trump’s “Big Beautiful Bill.” The legislation includes the creation of an above-the ...

On September 30, 2025, the U.S. Department of Labor (DOL) issued an opinion letter containing important reminders about how to calculate overtime pay for non-exempt employees who earn amounts in ...

"Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the 'half' portion of 'time-and-a-half' compensation," the IRS said. The ...

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 ...

President Donald Trump's major tax and spending law includes a four-year provision to shield overtime pay from taxation. During the 2024 campaign, Trump said he would "end all taxes on overtime." The ...

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 ...