Deduction for Overtime Compensation Topic of White Paper From CRS
July 02, 2026
July 02, 2026
WASHINGTON, July 2 (TNSLrpt) -- The Congressional Research Service issued the following In Focus white paper (No. IF13263) by public finance analyst Brendan McDermott:
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The Deduction for Overtime Compensation
Introduction
Federal law generally requires workers to pay individual income taxes and payroll taxes on their earned income. The 2025 reconciliation law (P.L. 119-21) created a new income tax deduction of up to $12,500 ($25,000 for t . . .
* * *
The Deduction for Overtime Compensation
Introduction
Federal law generally requires workers to pay individual income taxes and payroll taxes on their earned income. The 2025 reconciliation law (P.L. 119-21) created a new income tax deduction of up to $12,500 ($25,000 for t . . .