how cam you tell how much overtime you were paid through for 2025 and when did that rule apply?

[MonikaK1 · Accepted solution]

Check your W-2 - your employer may have included this information. Check your records against your employer's. The amount you may be able to deduct is just the premium (the "and a half" amount) and not the entire amount of overtime pay.
 

• If you earn overtime pay at work, you may be able to deduct up to $12,500 of qualified overtime compensation on your federal income tax return (up to $25,000 for married people filing a joint return).
• The overtime deduction is gradually phased out – potentially to $0 – if your modified adjusted gross income exceeds $150,000 ($300,000 for joint filers).
• Despite the “No Tax on Overtime” label, the overtime deduction does not completely eliminate taxes on overtime pay. Some people may still owe federal and/or state income tax on their overtime pay, and payroll taxes still apply to it.
• The overtime deduction is temporary – it only applies for the 2025 to 2028 tax years.

See this TurboTax tips article for more information.