Trump’s ‘no tax on overtime’ is now US law — but some Americans don’t even qualify. Here’s the catch

[PAF]

Mike Crisolago
August 13, 2025


They say that the only two certainties in life are death and taxes. The recently passed “Big Beautiful Bill,” however, claims to eliminate one of those — at least for overtime hours.

The budget bill, passed in July, followed up on a key Trump campaign promise to eliminate taxes on overtime pay. Even better: the law is retroactive to the beginning of 2025, giving those who work overtime an additional six months of tax-free wages ahead of all the money the bill will save them going forward.

But the reality may be far less generous than it sounds.......

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That said, according to Tax Policy Center estimates, only 9% of American households will actually save money by paying fewer taxes on overtime pay, resulting in an average added windfall of roughly $1400 annually.

And, of course, there’s one final caveat to the “no tax on overtime pay” law: it expires in 2028.



Full article:

https://www.yahoo.com/finance/news/trump-no-tax-overtime-now-133000616.html

 

[PAF]

Well, at least I do get 2 guarantees in life

only 9% of American households will actually save money by paying fewer taxes on overtime pay

Question: What percentage of Trump voters got gypped.

 

[Swordsmyth]

Best he could get through congress.
And this article is biased and relying on biased sources.
He will have it renewed and improved like his previous tax cuts.

 

[Swordsmyth]

Well, at least I do get 2 guarantees in life



Question: What percentage of Trump voters got gypped.

How many % even get overtime pay?

 

[Swordsmyth]

Go to the article and read the part he cut out for yourself.

 

[acptulsa]

Best he could get through congress.
And this article is biased and relying on biased sources.
He will have it renewed and improved like his previous tax cuts.

It's not perfect because Congress, it's more perfect than this article implies, it'll be improved in spite of the fact that Congress will continue to exist.

This is every post you've made here since January. Nobody is listening because while you're stuck on the left end of this graphic, the rest of us pay attention to the green stuff:

 

[Snowball]

The data on this stuff is a couple years old but about 60% of US households pay net income tax.
Of them, about 8-12% have overtime that qualifies for the limited deduction here.

The tax policy center article is pretty good because it shows how many will not benefit from any of Trump and GOP tax changes,
even the majority of those who do pay net income tax. So, it's still a politically bad bill, and it will come back to bite them unless they make changes to the Medicaid cuts. Those who make 35k or less are the great majority of tipped filers, and they will lose Medicaid, which accomplishes nothing at all because no hospital can turn them away, by law.

The Budget Law’s Tax Cuts For Overtime And Tips Are Popular, But Few Will Benefit

TPC estimates show that few will gain from new deductions for qualifying tip income and overtime pay, and the deduction for those over age 65 will only benefit half of those in that age group.

taxpolicycenter.org

 

[oyarde]

How many % even get overtime pay?

Only 60 percent of Americans work of those, up to 17 percent work overtime , these are the more productive type Americans and will probably benefit by an extra 2k per yr. This can't been spun as a bad thing .Congress could easily find spending cuts in excess of this if so desired

 

[TheTexan]

I am appalled at this tax cut and I demand that the tax on overtime be reinstated immediately

 

[Brian4Liberty]

"To start, the Wall Street Journal (WSJ) noted that the tax break only pertains to a portion of overtime pay, or the “‘half’ of ‘time and a half pay’, required under the federal Fair Labor Standards Act.”

For example, if a worker makes $40 an hour, then their time and a half overtime would amount to $60 an hour. Of that $60, only $20 (the “half” part of “time and a half”) remains tax-free.
...
As well, there’s a cap to how much overtime pay remains tax-exempt: $12,500 per person annually, or $25,000 for people filing together. Earners who make more than $150,000 (or $300,000 combined between two people filing together) are not eligible for tax-free overtime pay."

----

I wonder if the government Police/Firefighter Unions supported this? They tend to be the biggest beneficiaries of "overtime" pay.

It's all central planning and attempts to manipulate the economy (along with being a standard get your free-stuff campaign plank).

Why is there time and half in the first place? To make it expensive for employers to force workers to work overtime. This bill just seems to sweeten the pot for employees who chose to work overtime.

Government incentivizing or de-incentivizing activities in the economy is not my idea of free markets. But that's just me.

And yes, it's dead horse argument as to whether this is "good", as there are also those who see all tax breaks as "good".


How about no tax on income? Oh yeah, then there couldn't be favors and back room deals...

 

[PAF]

I am appalled at this tax cut and I demand that the tax on overtime be reinstated immediately

Yeah. You tell them.

I remember when Trump gave something like $600-$1200p/p out of that Cares Act in exchange for giving Bill Gates/Pharm initiatives $Billions$. What a great deal!

I remember on Married with Children when Kelly traded her Gold Nugget in for a shiny new nickel. The only reason I forgave her is because she was hot

 

[TheTexan]

Yeah. You tell them.

I remember when Trump gave something like $600-$1200p/p out of that Cares Act in exchange for giving Bill Gates/Pharm initiatives $Billions$. What a great deal!

Haha, suckers. I didn't qualify for the $600 but they did give me the $21,000 from the PPP

I remember on Married with Children when Kelly traded her Gold Nugget in for a shiny new nickel. The only reason I forgave her is because she was hot

Yes, yes she was

 

[PAF]

I remember on Married with Children when Kelly traded her Gold Nugget in for a shiny new nickel. The only reason I forgave her is because she was hot

Yes, yes she was

@Occam's Banana , numbers always matter. If they didn't, I would have taken the weight of gold over Kelly's hotness rating of 8/10!!!

 

[Occam's Banana]

@Occam's Banana , numbers always matter. If they didn't, I would have taken the weight of gold over Kelly's hotness rating of 8/10!!!

Non sequitur.

Objection overruled.

The fact that Kelly's hotness rating matters doesn't mean that any other numbers always matter.

 

[PAF]

Non sequitur.

Objection overruled.

The fact that Kelly's hotness rating matters doesn't mean that any other numbers always matter.

Even pertaining to the Gold Nugget, the value of the gold is weighed against Kelly's hotness rating; if the gold is only 2 grams, a person [some females apply also] with a certain amount of sustainable wealth would more than likely stare at 8/10 Kelly for an extended period of time as opposed to 2 grams of gold sitting on a table. Conversely, a very poor person who doesn't have 2 cents to rub together might look at Kelly and drool for a few moments, until the loaf of bread overcomes his taste buds at which 2 grams wins out. In that case, 2 grams outweighs the 8/10.

Therefore, the "any other numbers always matter" matter too. Just like the 8/10.

 

[acptulsa]

 

[PAF]

^ She's hot... an 8/10 hot... that's what matters! And adorable too!