Peach Latino Tax & Accounting28 years of experience · IRS CAA
← Back to blog

New for 2026: Deduct up to $12,500 of overtime pay under the OBBBA law

The One Big Beautiful Bill Act (OBBBA) created a new deduction for overtime pay. Qualifying workers may deduct up to $12,500 of overtime compensation ($25,000 for joint filers) on their federal return.

The deduction applies to the premium portion of overtime pay required under the Fair Labor Standards Act, and it phases out at higher income levels.

Not every worker qualifies, and your W-2 reporting matters. Bring your W-2 and pay stubs to your appointment and we will check exactly what you qualify for.

Book your appointment today — message or call (770) 986-7880.

Ready to receive what belongs to you?

Message or call (770) 986-7880 and book your appointment today.

Book by WhatsApp