“Overtime is tax-free now.”

What the law says

The Code allows a deduction for qualified overtime compensation. Overtime pay is still income; the deduction reduces how much of it is taxed.
There is a yearly cap, higher on a joint return, and it shrinks as your modified adjusted gross income rises above a threshold set in the statute.

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

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More claims about the same rule

“All of your overtime pay can be deducted.” · Not VALID
“The overtime deduction is permanent.” · Not VALID

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