theluckystrike

Who actually qualifies for the overtime tax deduction

The OBBBA overtime deduction applies to the premium half of federally-mandated time-and-a-half for non-exempt workers — not to salaried exempt employees, and not to the base portion of the pay.

There are income phase-outs and an annual cap, so high earners get a reduced or zero benefit even on real overtime.

Check your exemption status and total income first; the deduction is meaningful for hourly workers logging regular overtime, less so otherwise.

Try it: NoOvertimeTax on who qualifies overtime tax.