i read that there are some occupational restrictions on this, does this affect the compressed shift hourly workers in the factory, if so thats great news!
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Well Shazam, whaddya know! One thing I DO know is I wouldn't come to this sh#t thread for tax help or advice. But hey, everybody you just keep doing you.
@ks Really appreciate your response. Happy Holidays.
Not sure why others don’t believe that there’s been a change to the way overtime is taxed. Apparently the big bill they pushed through earlier this year makes it so you can deduct the “half” from your time and a half. This is according to Federal overtime standard so it’s everything over 40 hours in a week rather than everything over 10 hours a day like Oregon calculates overtime in an industrial setting.
From FreeTaxUSA’s 2025 tax software:
“ How much overtime should I enter for the overtime deduction?
You should enter the "half" amount of the "time-and-a-half" overtime income. For 2025, you'll need to sort out that "half" amount going back to the start of the year.
For example: Let's say your normal wage is $10 an hour. Your overtime at time-and-a-half would be $15 per hour. That means $5 per hour of overtime could be deducted. You'd then multiply that $5 by the total number of overtime hours you worked in the year.
Some W-2 employees may see their overtime reported in Box 14 if the employer had time to implement this change for the 2025 tax year.
Who doesn't qualify?
The overtime deduction uses the Fair Labor Standards Act to determine overtime. That act determines who qualifies. So, railroad and some highly compensated workers are excluded. Also, overtime doesn't start at the same number of hours for all workers. For example, firefighters would work on average 53 hours per week before earning overtime.
If you're in a union and covered by a collective bargaining agreement, you may start getting overtime pay before the number of hours in the Fair Labor Standards Act. However, for this deduction, you'd only count overtime hours based on the Fair Labor Standards Act.
For example, a firefighter may belong to a union that negotiated overtime pay to start at a lower number of hours. But in most cases, the overtime that counts for the overtime tax deduction would still only begin at 53 hours.”
FreeTaxUSA’s software also says, “ The One Big Beautiful Bill Act added a new deduction for overtime called, "no tax on overtime". We're still waiting for instructions from the IRS to clarify how these should work. Come back later and we'll help you get your maximum deduction allowed under this new bill.”
So it sounds like the government has yet to give clear guidance on how it’s supposed to actually work.
A troll by any other name...
That is incorrect. There is definitely tax. It's earned income. In fact the more you earn, the more it's taxed.
Move along now.
No
Oh Great, another post by the Oregonian Troll.