Tell Your Farm Employees They Don't Qualify for Overtime Deduction

This is true even in states where time and half is required

Photo by Ella Baxter on Unsplash

The One Big Beautiful Bill added a provision that allows employees a tax deduction up to $12,500 ($25,000 for married couples) for qualified overtime pay.

Qualified Overtime Pay is:

• The amount of overtime paid that is in excess of regular rates AND

• Is required under the Fair Labor Standards Act (FLSA) of 1938 Section 7 that required overtime in excess of regular rates.

Here is an example: