Tag: no tax on overtime

It’s summertime and while many of us are enjoying this great weather by taking or planning vacations, visiting our children at camp, managing our work-life balance a bit…IRS technical team members have been sorting through the many questions and concerns we in the accounting and business community have brought to them regarding overtime pay: how to calculate and report it for our staff. The IRS has just issued:  IR-2026-88;  updated FAQs…  Read more

The answer, of course, is “it depends”—and it’s neither quick nor easy.  As with most tax questions, the real answer depends on your specific facts, your goals, and the tax law itself. And in this case, the law is the One Big Beautiful Bill Act (OBBBA), Public Law 119-21 passed in July 2025. Under the One Big Beautiful Bill Act (OBBBA), Congress introduced a new deduction for qualified overtime compensation. While often referred to as…  Read more