Avoiding Errors in the OBBBA Overtime Income Tax Deduction

The IRS has released additional guidance designed to help employers and employees avoid errors in claiming the temporary deduction for qualified overtime income under the OBBBA. Under the FAQ, it's important for employees to remember that the amount that is reported on Form W-2 may ultimately not be the same as the amount that the employee is entitled to deduct. The amount that must be reported as qualified overtime income is the amount that the employer is required to pay the employee in excess of the employee's regular rate of pay--not the amount that the employee will be entitled to deduct come tax filing season. For more information on the deduction for qualified overtime income, visit Tax Facts Online. Read More: Link to Q8522.2.