Episode 30: No Tax on Overtime

What if your long hours finally paid off, literally?

The No Tax on Overtime Act (part of the H.R.1 tax bill) could allow W-2 workers to deduct up to $12,500 in qualified overtime pay from their taxable income each year between 2025–2028. For joint filers, that deduction could double to $25,000.

But what counts as “overtime”? How does this work in states like California? And what should employers be tracking now to avoid issues later?

In this episode of Full Throttle Finance™, Felicia and Alli explain how this bill affects both employees and employers. We cover federal labor definitions, payroll reporting requirements, and why this tax change is more about what’s on your W-2 than what hits your paycheck.

Whether you're running a race team or managing a growing business, this episode is your pit stop for understanding how federal deductions could shift your tax strategy in 2025.

📌 Need help with payroll compliance or financial reporting?