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Millions of taxpayers have already filed to claim President Donald Trump’s new “no tax on overtime” deduction. But some filers could risk errors on their tax return, experts say.
Enacted via Trump’s “big beautiful bill,” the overtime tax break allows certain workers to deduct up to $12,500 for single filers or $25,000 for married couples filing jointly per year from 2025 through 2028.
The deduction goes on a new form, known as Schedule 1-A, which feeds into individual tax returns. That schedule also includes Trump’s new tax breaks for tip income, seniors and auto loan interest.
As of March 4, the IRS received almost 56 million returns, and 43% included Schedule 1-A, Frank Bisignano, Social Security Administration Commissioner and IRS CEO, said this week during a House Ways and Means Committee hearing. The overtime deduction has been “the largest filing category” for that form, he said.
