The IRS has published frequently asked questions (FAQs) related to the new deduction for qualified overtime compensation under the One Big Beautiful Bill. The deduction, available for tax years 2025 through 2028, allows individuals to deduct qualified overtime compensation that exceeds their regular rate of pay when reported on Form W-2 or Form 1099. The FAQs provide additional information about the deduction, resources for determining qualification, and reporting requirement differences between tax years 2025 and 2026-2028. [IR-2026-10 (Jan. 23, 2026)]
This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.
