Ir-2025-114, nov. 21, 2025 รขโ‚ฌ the department of the treasury and the internal revenue service today issued guidance for workers eligible to claim the deduction for tips and for overtime compensation for รขโ‚ฌยฆ The federal overtime provisions are contained in the fair labor standards act.

No tax on overtime applies to overtime pay earned starting january 1, 2025, and continues through december 31, 2028, unless extended. To benefit, your employer must be able to separately report รขโ‚ฌยฆ

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