One Big Beautiful Bill: No Tax on Overtime (Part 6) - TurboTax Tax Tip Video скачать в хорошем качестве

One Big Beautiful Bill: No Tax on Overtime (Part 6) - TurboTax Tax Tip Video

https://turbotax.intuit.com/tax-tips/... Discover how the One Big Beautiful Bill, also known as the Working Families Tax Cut adds the new “No Tax on Overtime” rule for 2025–2028. This video breaks down how eligible workers can deduct overtime pay on their federal tax returns, who qualifies, the income limits, and how to get ready. Tax Reform Hub: https://turbotax.intuit.com/tax-reform/ 00:00 One Big Beautiful Bill: No Tax on Overtime 00:35 Who qualifies? 01:47 How can you prepare for this new tax break? 02:26 TurboTax Solution Click here to subscribe for more tax tips by TurboTax: https://www.youtube.com/turbotax?sub_... TurboTax Home: https://turbotax.intuit.com TurboTax Support: https://ttlc.intuit.com/ TurboTax Blog: https://blog.turbotax.intuit.com TurboTax Facebook:   / turbotax   TurboTax Instagram:   / turbotax   TurboTax Tik Tok:   / turbotax   TurboTax Pinterest:   / turbotax   ~~~ Video Transcript ~ One Big Beautiful Bill: No Tax on Overtime: You might be able to deduct some of your overtime pay on your federal income tax return. Let’s break down how this new law works, who qualifies, and when it takes effect. Under the One Big Beautiful Bill, https://turbotax.intuit.com/tax-tips/... also known as the Working Families Tax Cut, a new “No Tax on Overtime” rule lets eligible workers deduct overtime pay on their federal income tax return. Starting in 2025, and continuing through 2028, you may be able to deduct up to $12,500 in overtime pay, or up to $25,000 if you’re married filing jointly. So, who qualifies for no tax on overtime? This benefit applies to workers earning overtime pay required under federal law — typically hourly workers who earn time-and-a-half for hours worked beyond 40 in a week. To qualify, you must also have a work-eligible Social Security number. The deduction is not available to married people filing separate returns. You can exclude the full amount if your modified adjusted gross income (or MAGI) is $150,000 or less, or $300,000 or less if married filing jointly. Once your MAGI goes above those limits, the deduction is gradually phased out. Also keep in mind that the deduction only applies to federal income taxes. You’ll still pay Social Security and Medicare taxes on your overtime pay. For example, say you’re a single filer who earns $100,000 in regular wages and an additional $15,000 in overtime, for a total of $115,000. You can deduct $12,500 of overtime pay on your federal income tax return. However, the full $15,000 in overtime pay is still subject to Social Security and Medicare taxes. So, how can you prepare for this new tax break? Your employer will continue to include your overtime pay with other wages in Box 1 of your W-2 form. For 2025, your overtime pay might also be separately reported in Box 14. If not, you may receive a supplemental statement showing how much of your pay was overtime. You should also keep your pay stubs and maintain your own records. It’s the best way to confirm the accuracy of your reported overtime pay and claim the correct deduction. Understanding how these changes affect you doesn’t have to be stressful. Filers could see up to $1,000 refund increase or lower balance due, based on recent tax law changes. Watch the rest of the videos in this series for a deep dive into each change, so you'll know exactly what to expect when you file. TurboTax is your trusted resource for tax law changes. Visit https://turbotax.intuit.com/ for more info to help you file your taxes, with confidence! ~~~