#overtimepay

Big news most workers are still missing 👇

Under the One Big Beautiful Bill Act, you can now deduct: ✔️ Up to $12,500 (individuals) ✔️ Up to $25,000 (joint filers)

📅 Applies for tax years 2025–2028 👉 Meaning it impacts your 2025 return due April 15

What you should do NOW: • Check your W-2 (Box 1 taxable wages) • Verify overtime is correctly reported • File Schedule 1-A to claim your deduction

⚠️ Important: IRS flagged errors in overtime reporting by employers — don’t skip checking your W-2!

At Mukesh Thakur, we’re reviewing W-2s to catch these mistakes before it’s too late.

💬 Got questions? DM us anytime.

#TaxUpdate #OvertimePay #IRS #TaxSavings #FinanceTips #TaxSeason #W2 #MoneyMatters

The brief’s key findings are:

The new “no tax on overtime” law – in effect through 2028 – could encourage workers to change their behavior.

The changes could involve: 1) seeking more overtime hours; or 2) collaborating with employers to reclassify some work as “overtime.”

Policymakers should keep an eye on the issue due to potential revenue loss since:

while the current share of hourly workers with overtime pay is modest, many are close to exceeding the 40-hour threshold; and

more workers still – both hourly and salaried – could benefit from accepting lower base pay and redefining some of their work as “overtime.”

What Is Considered Overtime for Salaried vs Hourly Employees?

What Is Considered Overtime: Everything You Need To Know