This webpage is for informational purposes only. University of Utah Human Resources and Tax Services cannot provide individual tax advice or assist with preparing individual tax returns.
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.
For individual tax guidance, please refer to IRS.gov, the resources below, or consult a tax advisor.