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Federal Tax Deduction for Overtime Pay
Whether you're clocking in extra shifts or burning the midnight oil at your desk, a new tax break is on the way for overtime earners. Thanks to Section 70202 of the One Big Beautiful Bill Act (OBBBA), workers can deduct qualified overtime pay starting in 2025. It’s a rare win for everyday employees—putting more of your hard-earned money back where it belongs: in your pocket.

Christian Wolff
Jul 133 min read
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