by: John B Love IIIPublished on: 02/01/2026Learn about the new deduction for qualified overtime pay available for 2025–2028, including limits, phaseouts, eligibility rules, and W-2/1099 reporting requirements.
qualified overtime pay deductiondeduction for overtime compensation2025 tax changesovertime deduction 2026Form W-2 qualified overtime reportingForm 1099 overtime reportingFair Labor Standards Act (FLSA) overtimemodified AGI phaseout$12,500 overtime deduction limit$25,000 overtime deduction MFJfederal income tax deduction overtimeFICA FUTA overtime taxes