“All of your overtime pay can be deducted.”

What the law says

Only the extra part counts: the overtime pay above your regular rate, and only overtime that the Fair Labor Standards Act requires your employer to pay.

Source: IRC §225. Read the full rule, with the law quoted

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More claims about the same rule

“Overtime is tax-free now.” · Half true
“The overtime deduction is permanent.” · Not VALID

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