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If OT is paid for over 8 hours but not over 40 hours in the week does it still qualify for new deduction in taxes?

 
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2 Replies

If OT is paid for over 8 hours but not over 40 hours in the week does it still qualify for new deduction in taxes?

No. 

LaShaunA3
Employee Tax Expert

If OT is paid for over 8 hours but not over 40 hours in the week does it still qualify for new deduction in taxes?

No, under the One, Big, Beautiful Bill Act’s overtime provision, only the overtime premium required by federal law qualifies for the deduction. 

 

The FLSA (Fair Labor Standards Act) generally requires overtime only after 40 hours in a workweek. Only the premium portion tied to hours exceeding 40 in a week would be eligible.

 

What's the new tax law for overtime pay?

Questions and answers about the new deduction for qualified overtime compensation

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