On Aug. 6, 2026, the Internal Revenue Service issued updated Frequently Asked Questions concerning the new federal income tax deduction for qualified overtime compensation under the One, Big, Beautiful Bill Act.
This deduction is only available for tax years 2025 through 2028.
The FAQs supersede the previously released FAQs and provide important clarification concerning what qualifies for the deduction and employers’ payroll and reporting obligations. READ MORE
