I’ve just noticed that the OBBB Act contains a “no tax on overtime” provision, exempting extra overtime pay up to a deduction of $12,500, for tax years 2025-2028. If you, like me, are indifferent between 40-hour workweeks and alternating 32- and 48-hour workweeks, you can get a pretty good extra tax deduction. This can be as easy as working one weekend day every 2 weeks and taking a 3-day weekend the following week. (That’s an upper bound on the difficulty! Depending on your schedule and preferences there are probably even easier ways.) Unfortunately this only works for hourly, not salaried, employees.
I’ve just noticed that the OBBB Act contains a “no tax on overtime” provision, exempting extra overtime pay up to a deduction of $12,500, for tax years 2025-2028. If you, like me, are indifferent between 40-hour workweeks and alternating 32- and 48-hour workweeks, you can get a pretty good extra tax deduction. This can be as easy as working one weekend day every 2 weeks and taking a 3-day weekend the following week. (That’s an upper bound on the difficulty! Depending on your schedule and preferences there are probably even easier ways.) Unfortunately this only works for hourly, not salaried, employees.