The overtime deduction is temporary – it only applies for the 2025 to 2028 tax years.

The IRS has announced that new tax-reporting rules are forthcoming for overtime compensation under recent federal tax ...

Discretionary income is compensation that an employer can choose to provide or not. Some bonuses, gifts, and holiday benefits are examples of discretionary income (but, ONLY when their receipt is ...

The temporary provision applies to tax years from 2025 through 2028.

A new deduction allows workers to subtract part of their overtime wages from their 2025 taxable income, lowering some taxpayers' bills in April. However, workers will need to calculate their deduction ...