{"id":41245,"date":"2026-02-17T13:39:33","date_gmt":"2026-02-17T13:39:33","guid":{"rendered":"https:\/\/financialrush.com\/?p=41245"},"modified":"2026-02-17T13:39:33","modified_gmt":"2026-02-17T13:39:33","slug":"how-to-claim-it-this-season","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=41245","title":{"rendered":"How to claim it this season"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108265047\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Jetta Productions Inc | Digitalvision | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>If you earned overtime pay in 2025, you could see a <a href=\"https:\/\/www.cnbc.com\/2026\/01\/30\/tax-refunds.html\">bigger refund<\/a> during the <a href=\"https:\/\/www.cnbc.com\/2026\/01\/26\/tax-season-opens-trumps-tax-cuts.html\">2026 filing season<\/a> based on a <a href=\"https:\/\/www.cnbc.com\/2025\/11\/25\/irs-guidance-trump-tips-overtime-deductions.html\">new tax break<\/a> enacted via President <a href=\"https:\/\/www.cnbc.com\/donald-trump\/\">Donald Trump<\/a>\u2018s \u201cbig beautiful bill.\u201d <\/p>\n<p>But missing details on <a href=\"https:\/\/www.cnbc.com\/2026\/02\/12\/tax-return-audit-key-tax-forms.html\">tax forms<\/a>, such as on your <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-w-2\" target=\"_blank\">W-2<\/a> from an employer, could be confusing when filing returns this year, experts say.\u00a0\u00a0\u00a0<\/p>\n<p>The <a href=\"https:\/\/www.irs.gov\/newsroom\/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation\" target=\"_blank\">\u201cno tax on overtime\u201d deduction<\/a> allows certain workers to deduct up to $12,500 for single filers or $25,000 for married couples filing jointly per year from 2025 through 2028. The tax break starts to phase out, or get smaller, when earnings exceed $150,000 for single filers or $300,000 for joint filers.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"read-more-cnbc-personal-finance-coverage\" class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<div class=\"group\">\n<ul>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/16\/student-loan-parent-plus-forgiveness.html\">Parents with student debt face deadline to secure affordable repayment, forgiveness<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/15\/emergency-savings-401ks.html\">Secure 2.0 let employers pair emergency savings and 401(k)s, but few have done so<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/14\/home-sellers-start-getting-lower-prices-at-70-research-shows.html\">Home sellers start getting lower prices at 70, research shows \u2014 here\u2019s why<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/average-tax-refund-early-irs-data.html\">Average IRS tax refund is up 10.9% so far this season, early filing data shows<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/social-security-cola-2027-early-estimates.html\">Early estimates point to lower Social Security COLA for 2027<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/social-security-fairness-act-lump-sum-payment-timeline.html\">Senators call for longer Social Security Fairness Act lump-sum payment timeline<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/heres-the-inflation-breakdown-for-january-2026-in-one-chart.html\">Here\u2019s the inflation breakdown for January 2026 \u2014 in one chart<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/average-tax-refund.html\">Average tax refund is up 22%, Bessent says \u2014 what filers can expect this season<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/k-shaped-economy-middle-class-spending.html\">K-shaped economy looks like \u2018jaws of a crocodile,\u2019 economist says: Here\u2019s why<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/12\/epa-endangerment-finding-repeal.html\">How EPA \u2018endangerment finding\u2019 repeal could impact your wallet<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/12\/medical-debt-bankruptcy.html\">Medical emergencies can lead to debt and bankruptcy \u2014 even for insured Americans<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/12\/tax-return-audit-key-tax-forms.html\">Bigger tax refunds may be coming \u2014 but missing key forms could risk an audit<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/11\/social-security-fairness-act-taxes.html\">How Social Security Fairness Act payments may affect beneficiaries\u2019 taxes<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/10\/new-york-fed-credit-card-debt-tops-1point28-trillion.html\">Credit card debt tops $1.28 trillion, consistent with \u2018K-shaped\u2019 economy: NY Fed<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/10\/affordability-led-to-a-chasm-between-stock-prices-consumer-optimism.html\">How affordability led to a chasm between stock prices, consumer optimism<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/09\/cfpb-student-loan-complaints.html\">Student loan complaints at record high, CFPB finds, but agency omits details<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2025\/10\/01\/best-financial-advisors.html\">CNBC\u2019s Financial Advisor 100: Best financial advisors, top firms ranked<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>For 2025, your employer isn\u2019t required to separate overtime from regular pay on Forms W-2, 1099-NEC or 1099-MISC. That means you\u2019ll need to calculate qualified overtime on your own during the 2026 season.  \u00a0<\/p>\n<p>\u201cTreasury gave employers a year off [from reporting],\u201d said certified financial planner Micha Siegel, founder of TaxCentric, an advisory firm in Fair Lawn, New Jersey. \u201cBut that makes it really hard for taxpayers.\u201d<\/p>\n<p>As a result, many workers will have to use pay stubs to figure out their overtime deduction for 2025, said Siegel, who is also a certified public accountant. <\/p>\n<\/div>\n<h2 id=\"who-qualifies-for-no-tax-on-overtime-deduction\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Who qualifies for \u2018no tax on overtime\u2019 deduction<\/h2>\n<div class=\"group\">\n<p>The \u201cno tax on overtime\u201d deduction applies to non-exempt workers with earnings covered under the <a href=\"https:\/\/www.dol.gov\/agencies\/whd\/overtime\/laws\" target=\"_blank\">Fair Labor Standards Act<\/a>, or FLSA. The law generally includes workers who must receive at least 1.5 times their normal pay rate once they exceed 40 hours per week. <\/p>\n<p>However, this definition <a href=\"https:\/\/www.irs.gov\/newsroom\/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation\" target=\"_blank\">excludes some workers<\/a> covered by state or labor contract mandates, according to the IRS.<\/p>\n<p>You can only deduct the portion of overtime pay that exceeds your regular rate. For example, if your overtime rate is 1.5 times your normal rate, you can deduct the one-half portion up to the yearly limits. <\/p>\n<\/div>\n<h2 id=\"how-to-calculate-the-no-tax-on-overtime-deduction\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>How to calculate the \u2018no tax on overtime\u2019 deduction <\/h2>\n<div class=\"group\">\n<p>This season, it could be tricky to figure out your 2025 overtime deduction without details separately reported on your tax forms, experts say. \u00a0<\/p>\n<p>Some employers will report the number in box 14 of your W-2, \u201cbut only the nice ones,\u201d said Siegel from TaxCentric.<\/p>\n<p>If the figure isn\u2019t shown on your W-2, you\u2019ll need to find overtime totals via company payroll software or on your pay stubs. That should provide a starting point to calculate the deduction.   <\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108253292\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108253292\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000401013\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>In some cases, you could see the \u201covertime premium\u201d separated from regular compensation on pay stubs or in payroll software. <\/p>\n<p>Other employers may only report a year-end lump sum, which <a href=\"https:\/\/www.irs.gov\/newsroom\/treasury-irs-provide-guidance-for-individuals-who-received-tips-or-overtime-during-tax-year-2025\" target=\"_blank\">requires some math<\/a>, depending on your overtime rate, according to the IRS. Here\u2019s the calculation: <\/p>\n<ul>\n<li>for 1.5 times regular pay, divide the lump sum by 3<\/li>\n<li>for 2.0 times regular pay, divide the lump sum by 4<\/li>\n<\/ul>\n<p>\u201cStarting with that year-end pay stub will be really, really helpful,\u201d said Tom O\u2019Saben, director of tax content and government relations at the National Association of Tax Professionals.\u00a0<\/p>\n<p>Regardless of your overtime deduction, it\u2019s important to save paperwork to support the tax break on your return, just in case the IRS has questions later, O\u2019Saben said. <\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/02\/17\/no-tax-on-overtime-deduction.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Jetta Productions Inc | Digitalvision | Getty Images If you earned overtime pay in 2025, you could see&hellip;\n","protected":false},"author":3,"featured_media":41246,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-41245","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/41245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41245"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/41245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/41246"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}