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Taxes

The Overtime Deduction (2026): How to Estimate the Overtime Premium When Payroll Doesn’t Break It Out

W-2 form with blank Box 14, calculator, and paystub illustrating the OBBBA Overtime Tax Deduction and Divide-by-3 rule for 2026 tax filing.

If your year-end payroll summary (or W-2 support documents) show substantial overtime, but do not clearly separate the “overtime premium” …

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