No tax on overtime applies to overtime pay earned starting january 1, 2025, and continues through december 31, 2028, unless extended. To benefit, your employer must be able to separately report … The federal overtime provisions are contained in the fair labor standards act.

Ir-2025-114, nov. 21, 2025 †the department of the treasury and the internal revenue service today issued guidance for workers eligible to claim the deduction for tips and for overtime compensation for …