02/10/2026
Here a couple of misconceptions regarding the OBBB passed last year regarding no tax on social security and no tax on overtime. This is not all inclusive and is a Reader's Digest version.
1. No tax on social security is really a special deduction relating to social security. You still need to provide your social security statements at year end. Its estimated that 90% of people who have taxable social security will not pay tax on social security income, but those who receive larger social security checks will not be FULLY exempt. Lots of exceptions here.
2. No tax on overtime is no tax on the overtime PREMIUM if it meets FLSA regulations. E.G., $30 per hour at standard time means $45 per hour at overtime. ONLY the additional $15 per hour you get for overtime is eligible for the deduction, and that amount is limited. Not everyone who works overtime is eligible and it may or may be spelled out on your w-2 as its not required to be reported in 2025. Provide your last pay stub if you work overtime. Lots of exceptions here too.
