Due to provisions of the One Big Beautiful Bill Act (OBBBA), the IRS has announced a federal income tax deduction for qualified overtime compensation paid in tax year 2025.

Eligible employees may be able to deduct the qualifying portion of overtime pay when filing their 2025 federal individual tax return (filed in 2026). Eligibility for any deduction, as well as the amount that may be deducted, is determined at the time you file your tax return and may vary based on your personal circumstances and IRS guidance.

• 2025 Form W-2:
  Overtime pay is not separately listed on the 2025 Form W-2. You will need to use your final paycheck to determine your year-to-date overtime.
• On your paycheck:
  You can view year-to-date overtime in the Hours and Earnings section on the 12/22/2025 paycheck or your final 2025 paycheck.

• Current employees:
  Download paychecks in Campus Information Systems (CIS) under the Payroll, Taxes & Salary section.
• Former employees:
  Contact the appropriate HR office to request paychecks:
  • Hospitals and Clinics employees: HR_Frontdesk@hsc.utah.edu
  • Campus employees: AskHR@utah.edu

• University of Utah Human Resources and Tax Services cannot provide individual tax advice or assist with preparing individual tax returns.
• Employees are encouraged to consult a qualified tax professional with questions related to eligibility or filing their tax return.

For individual tax guidance, please refer to IRS.gov, the resources below, or consult a tax advisor.

• IRS Newsroom: Overtime Deduction Information
• Notice 2025-69: Detailed guidance for individual taxpayers on how to calculate and claim deductions for qualified overtime compensation in 2025.
• IRS Publication 17, Your Federal Income Tax: includes instructions for the overtime deduction.