This proposal lets many workers lower their taxes by deducting part of their overtime pay. You could deduct overtime that is required by federal law, but only up to 20% of your regular wages from the same job. It would end for overtime earned after December 31, 2029. People with higher incomes would not qualify: above $100,000 if single, $150,000 if head of household, or $200,000 if married filing jointly. A federal summary confirms these limits and that it runs through 2029 .

Key points:

• Who is affected: Workers who get overtime required by federal law and whose income is under the limits.
• What changes: Allows a tax deduction for some overtime pay, capped at 20% of regular wages from the same employer.
• When: Applies through 2029; no deduction for overtime received after December 31, 2029.