The OBBBA (One Big Beautiful Bill Act) overtime deduction requires a valid Social Security Number (SSN) for employment to claim the deduction for tax years 2025–2028, not just a Taxpayer Identificati...
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The OBBBA (One Big Beautiful Bill Act) overtime deduction requires a valid Social Security Number (SSN) for employment to claim the deduction for tax years 2025–2028, not just a Taxpayer Identification Number (TIN).
The taxpayer who received the qualified overtime compensation must have a social security number valid for employment and must include the social security number on the tax return claiming the deduction.
If the taxpayer is married (within the meaning of section 7703), the taxpayer and the taxpayer’s spouse must file a joint return to claim the deduction. If both spouses received qualified overtime compensation, both spouses must have a social security number valid for employment and must include both social security numbers on the tax return claiming the deduction.
Thus, if you have an SSN and only you had overtime pay, then you qualify if you meet the other requirements.
This IRS questions and answers page provides the following information about qualified overtime for purposes of the new deduction:
Qualified overtime compensation is overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act (FLSA) (29 USC § 207) that exceeds the regular rate at which the individual is employed. For example, if an individual is paid at “one and one-half times” their regular rate for an hour of overtime work as required by the FLSA, the “half” portion of the “one and one-half times” paid for an hour of overtime work is qualified overtime compensation.
For overtime to be required under the FLSA, it must, among other requirements, be paid to an individual who is both covered by the FLSA and not exempt from the FLSA’s overtime requirement (an FLSA overtime-eligible employee). See Q2/A2 and Q3/A3 to determine if you are covered by and not exempt from the FLSA’s overtime requirement.
An individual who is ineligible for overtime under the FLSA does not receive qualified overtime compensation regardless of other laws or circumstances (such as a collective bargaining agreement) providing for overtime pay.
Individuals eligible for overtime under the FLSA generally must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than one and one-half times their regular rate of pay. If an individual is eligible for overtime under the FLSA, but the individual’s employer pays more than is required under the FLSA, the qualified overtime compensation is limited to the portion of the overtime that is required by the FLSA that is in excess of the regular rate. For example, if an employer pays double the individual’s regular rate for hours worked over 40 in a workweek, only the one-half portion that is relied upon to comply with the FLSA requirement is qualified overtime compensation.