IRS clarifies 'no tax on overtime' deduction rules. What workers need to know

IRS clarifies 'no tax on overtime' deduction rules. What workers need to know

Taxpayers who were unsure whether they qualified or how much they could claim will likely have an easier time when they file their 2026 tax returns, expert say.

IRS clarifies ‘no tax on overtime’ deduction rules for 2026 filers

IRS clarifies ‘no tax on overtime’ deduction rules for 2026 filers Click this link for the original source of this article. Author: CNBC This content is courtesy of, and owned and copyrighted by, https://www.offthepress.com and its author. This content is made available by use of the public RSS feed offered by the host site and...

IRS updates guidance on overtime deduction

The Internal Revenue Service has updated the questions and answers in its fact sheet on the new overtime deduction under the One Big Beautiful Bill Act, now known as the Working Families Tax Cuts.

The new IRS overtime rules are now in effect

New "No Tax on Overtime" rules require employers to include eligible overtime on workers’ W-2 forms.

IRS Updates FAQs on the Qualified Overtime Compensation Deduction: Compliance Obligations for Employers

On August 6, 2026, the IRS released Fact Sheet FS-2026-13, substantially revising and replacing FS-2026-01, its January 2026 guidance on the new deduction for qualified overtime compensation enacted by the One Big Beautiful Bill Act (OBBBA). The revised guidance reflects the transition from the temporary 2025 reporting relief period to a more formal compliance regime applicable for tax years 2026 through 2028.  As a reminder, the IRS provided tr…