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Wondering who actually qualifies for the new no-tax overtime deduction? Here’s the breakdown. You must be an hourly, non-exempt employee who earns overtime based on FLSA rules — meaning overtime only counts for hours worked over 40 hours a week and paid at least time-and-a-half. You can deduct the premium portion of your OT (the extra 0.5 or 1.0 for double time), but the deduction is capped at 20% of your wages and phases out around $120k for single filers and $200k for married filing jointly. U
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