The “No Tax on Overtime” provision in Trump’s One Big Beautiful Bill is being hailed as a win for working people, but after spending my July 4th in a hospital ER watching the working class argue about it I can’t help but feel we’re being played. The provision sounds simple. If you put in overtime, you pay no taxes on that overtime. But that is not what this is. It’s a tax deduction and you can only deduct up to $12,500 of that pay from your taxable income each year from 2025 to 2028, or $25,000 for couples filing jointly. In theory, that should mean more money in your pocket for every hour you grind past 40 each week.
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