President Trump aims to eliminate taxes on overtime pay as part of the “One, Big, Beautiful Bill.” The House passed the bill, which proposes a tax deduction for overtime pay exceeding regular wages, but it is now under review by the Senate.
The Senate version introduces limits: a cap of $12,500 for individuals and $25,000 for married couples on the deduction, alongside income phaseouts starting at $150,000 for single filers. The deadline for Senate passage is uncertain, with concerns from several Republican senators.
If enacted, the overtime tax deduction would apply starting in the 2025 tax year and remain until at least 2028, pending future legislative decisions. Currently, no votes are scheduled in the Senate.
