The Qualified overtime deduction is for overtime pay that is required by the 1939 Fairs Labor Standards Act. In addition, the employee must not be exempt from the Fair Labor Standards Act. FLSA ...
See more...
The Qualified overtime deduction is for overtime pay that is required by the 1939 Fairs Labor Standards Act. In addition, the employee must not be exempt from the Fair Labor Standards Act. FLSA Type N - Non-Exempt refers to being non-exempt from the Fair Labor Standards Act, so the Qualified overtime deduction is available to you. For tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay (generally, the “half” portion of “time-and-a-half” compensation) that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual. Maximum annual deduction is $12,500 ($25,000 for joint filers). Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). The deduction is available for both itemizing and non-itemizing taxpayers.