https://www.live-feeds.com/feed/irs-clarifies-no-tax-on-overtime-deduction-rules-what-workers-need-to-knowContinuously updated, source-cited coverage. https://www.live-feeds.com/feed/irs-clarifies-no-tax-on-overtime-deduction-rules-what-workers-need-to-knowhttps://www.live-feeds.com/feed/irs-clarifies-no-tax-on-overtime-deduction-rules-what-workers-need-to-know#u45405Thu, 20 Aug 2026 03:26:12 +0000The IRS has released final rules and updated guidance for the 2026 overtime tax break, focusing on the Qualified Overtime Compensation Deduction. Employers must now follow specific compliance obligations for withholding and reporting. To claim the deduction, workers should check Box 12 of their W-2 forms. The agency has provided updated FAQs and W-2 reporting instructions to ensure employers correctly identify and document qualified overtime pay for their staff.Why it mattersThis guidance establishes how workers can reduce their tax liability on overtime earnings. It shifts the administrative