September 26th, 2025 by WCBC Radio

Recently enacted tax rules say a designated amount of qualifying overtime pay will be exempt from federal income tax under the One Big Beautiful Bill Act. For a single person, up to $12,500 dollars in overtime pay would be tax-free. Joe Mullenax of Allegany Business Consulting says calculating what is and isn’t taxed can be confusing…

   

“So it’s only the extra part of overtime. In other words, if you make $20 an hour and you work an hour of overtime and you get paid $30 for that hour at time-and-a-half, it’s only the extra $10 that going to be tax free, not the whole hour.”