So what's the verdict. Anyone know how it works since the bbb was signed?

Kiplinger Magazine:

From 2025 through 2028,workers will be allowed to deduct up to$ 12,500 a year in overtime pay, or $ 25,000 if they are married and filing jointly. This phases out for single filers with MAGI of more than $ 150,000 and joint filers with MAGI over $ 300,000.

My understanding is it's not entire overtime wage. Only the "half" portion of time and a half.

2. No Tax on Overtime Pay
You may deduct the extra pay you earn from working overtime.

This includes the extra “half” part of “time-and-a-half” pay.

Max deduction: $12,500 per person, $25,000 for joint filers.
Applies only to FLSA-qualified overtime.
Must be reported on W-2 or 1099.
Income Limits:
Same phase-out as the tip deduction.

Be nice if they got rid of all income taxes.

Last thing I saw said tip tax reduction went in effect retro active Jan first this year. but The overtime credit/deductions won't go into effect untill 2026 Jan

So much back and forth I'm not sure what to believe.

With the ability to print money, there's no real need for taxes at all.

Pretty sure the deduction is for 2025 thru 2028.. There were also a few other things signed into law....

Nice I'm sure I'm well over the 25 k limit they put on ot this year. The dedication will be nice. Don't think I will be working much more if any of it the rest of the year. Amazing how things have changed. Even called in one day this week.

That's a nice perk. I don't work as much OT as some but I came in around 25K in OT last year and was on pace to break that this year but it's dropped off some now. I also want to hunt this fall when the weather cools down.

As mentioned above, form my understanding, it is only on the premium portion of the overtime.
So, if you have a wage of 20 dollars an hour, and an overtime rate of 1.5 times, and work 100 hours of overtime, to earn 3000 dollars of overtime pay, your deduction would only be 1000. ( the premium portion times the hours)

Now, before everyone goes crazy on what a bunch of crap that is.... let me ask you this. How much of a deduction have you previously gotten, for ANY portion of your overtime pay?

I am sick of discussing this with guys at work. All but one of them , started out whining about how it's not fair that it's only the premium portion, and how it only lasts until 2028. After some discussion, most begrudgingly agree , that they've never received anything , before
so maybe , something is better than nothing.

I started out , trying to explain my theory of " hey, at least it's something, right ? " , but now I've switched to, " YEAH, you should not work ANY overtime until 2028....that'll teach em"

I have worked zero in the last 3 weeks maybe t hrs if stretch that to 4 weeks. Very odd for me 3 of my weeks typically have 40 to 56hr of ot a week. But I'm cuting back to the point needing to re due a budget and reduce amount of savings drastically. May pick some up latter on and really should but don't want to get back into that pattern. Time at home is nice. Would be wven nicer if I had not messed up the back while I have been home.

I have no faith my company or the government will even break that down right. some of my ot pay is 1.5x some 2x , 2.5x and even 3x when called in in a Holliday.

The disappointment stems from how it is being misleading advertised. NO TAXES ON SS. Lie It's a reduction to off set the taxes and my well be 100% for some but is not no taxes on all ss. Same with tips and OT. Yes it's better than nothing more than better than nothing infact but absolutely not what most of the population believes was advertised.

Go buy something advertised one way for the deal and get there and find out it's different who is going to not be happy even if it's still a good deal, it's still not how you understood the advertisement and it will make you feel deceived.

The disappointment stems from how it is being misleading advertised. NO TAXES ON SS. Lie It's a reduction to off set the taxes and my well be 100% for some but is not no taxes on all ss. Same with tips and OT. Yes it's better than nothing more than better than nothing infact but absolutely not what most of the population believes was advertised.

Go buy something advertised on way for the deal and get there and find out it's different yes hour going to not be happy even if it's still a good deal, it's still not how you understood the advertisement and it will make you feel deceived.[/quote]

Spot on

And here I thought we all wanted a flat tax and a simplified tax code? Maybe not, if we are the winners they pick this time?

I'll take the tax cut.

Back in the day we just banked our overtime hours and took it as vacation pay.

The SS thing is additional deduction to the standard deduction for people 65 and older. AND its only for four years (2025 through 2028). After that, Congress would have to renew it.

Face it, the country is broke and has been broke for a long time. The fiat money system just hasn't imploded yet except with real purchasing power of the average person decreasing each year. They still need about he same amount of overall tax just to stay what they can sell as "even" in the ponzi game. When Prez Barry took office in 2009, the federal debt was around 20 trillion. Sixteen years later its 37 trillion.

The thing about the ability to "print money" is that it works until it doesn't. Just go ask the Germans during the Weimar Republic how that turned out...