IRS Offers More Info On How The New Overtime Deduction Works

ByKelly Phillips Erb,

Forbes Staff.

The IRS has released new guidance in the form of frequently asked questions (FAQs) to help eligible taxpayers claim the overtime compensation deduction. The guidance explains how the new deduction for qualified overtime compensation works, who may be eligible, and how it will be reported—at least for now.

(And remember: as with tips, this is a deduction, not an exclusion. That’s important for reporting purposes.)

Here’s what you need to know.