No Tax on Overtime Act Explained | H.R.1 Tax Bill Breakdown (2025–2028)

The No Tax on Overtime Act could allow eligible W-2 workers to deduct up to $12,500 (or $25,000 for joint filers) in qualified overtime pay from their taxable income between 2025 and 2028. But what counts as overtime—and how will the IRS enforce it?

In this episode of Full Throttle Finance™, we break down what’s really inside this section of H.R.1, also known as the "Big Beautiful Bill." Whether you're working overtime or managing payroll, here’s what you need to know:

✅ Who qualifies under FLSA rules
✅ Why state-level overtime (like California’s) might not count
✅ How to make sure overtime is properly reported on W-2s
✅ Why your paycheck won’t change, but your tax return might
✅ What employers need to start tracking now

📌 This is a federal income tax deduction, not a credit, so reporting accuracy matters more than ever.

🛠 Need help prepping payroll or checking your W-2 setup?
Visit: https://www.cleanbeeconsulting.com/fullthrottlefinance

#NoTaxOnOvertime #HR1TaxBill #TaxDeduction2025 #PayrollCompliance #SmallBusinessTaxHelp #CleanBeeConsulting #FinancialLiteracy #W2Overtime #BookkeepingTips