Fact check: How much is considered overtime tax deductible in the one big beautiful bill

1. Summary of the results

The analyses from various sources, including ^[1], ^[2], and ^[3], consistently indicate that the One Big Beautiful Bill Act allows for a tax deduction of up to $12,500 in overtime pay for most filers and up to $25,000 for those filing jointly, with the deduction phasing out for higher earners ^[1]. This is further supported by sources ^[5], ^[2], and ^[4], which confirm the maximum annual deduction and phase-out thresholds ^[2]. Additionally, sources ^[1], ^[3], and ^[2] provide consistent information, stating that up to $12,500 (for most filers) or $25,000 (Married Filing Jointly) in overtime pay can be deducted from taxable income, with the tax benefit phasing out for higher earners ^[1]. The key points to note are the maximum deductions of $12,500 for individuals and $25,000 for joint filers, and the phase-out thresholds of $150,000 for single filers and $300,000 for joint filers.

• The sources consistently agree on the maximum annual deductions and phase-out thresholds ^{[2] [3]}.
• The deduction is available for qualified overtime compensation ^{[3] [4] [2]}.
• The phase-out thresholds are based on modified adjusted gross income ^{[2] [3]}.

2. Missing context/alternative viewpoints

Some sources, such as ^[5], provide additional context on the deductions for tips and overtime wage earnings, stating that the deductions are limited to $25,000 per individual for tips and $12,500 for overtime, with proportional reductions for every $1,000 gained beyond these amounts ^[5]. However, the original statement does not provide information on the specific requirements for qualified overtime compensation or the impact of the phase-out thresholds on higher earners. Alternative viewpoints may include considerations for taxpayers with modified adjusted gross income above the phase-out thresholds, who may not be eligible for the full deduction ^[3]. It is essential to consider the specific circumstances of each taxpayer to determine the eligibility for the deduction.

• The sources do not provide information on the potential impact of the deduction on tax revenues or the overall economy ^{[1] [5]}.
• The original statement does not address potential criticisms or limitations of the One Big Beautiful Bill Act ^{[2] [3]}.

3. Potential misinformation/bias in the original statement

The original statement may be considered incomplete, as it does not provide information on the phase-out thresholds or the specific requirements for qualified overtime compensation ^[1]. This lack of information may lead to misinformation or misunderstandings about the eligibility for the deduction. Additionally, the statement does not address potential criticisms or limitations of the One Big Beautiful Bill Act, which may be considered a bias towards presenting only the benefits of the act ^[2]. The sources consistently agree on the maximum annual deductions and phase-out thresholds, but the original statement may benefit from providing more context and addressing potential criticisms.

• The original statement may benefit from including information on the potential impact of the deduction on tax revenues or the overall economy ^[1].
• The sources may be considered biased towards presenting the benefits of the One Big Beautiful Bill Act, without fully addressing potential limitations or criticisms ^{[2] [3]}.