How the no tax on overtime deduction really works for 2025

If you can claim $5,000 for the year, the tax savings could add up to $1,100 for those single workers in a 22% bracket.A simple example: If you're in a 22% marginal tax bracket, you could be looking at a federal income tax savings of $2,750 if single and somehow able to claim the maximum deduction of $12,500 for qualifying overtime pay earned in 2025.Given the acrobatics involved with what OT pay qualifies, though, it seems unlikely that many people would work enough OT hours in a year to reach the maximum ...