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Back in September of 2024 while Donald Trump was on the campaign trail, he proposed eliminating the income tax on overtime wages. Such a task certainly can't be accomplished overnight, and many details must be ironed out. People may have been under the impression that they would instantly bring home more money once Trump takes office and he can effectively institute his policies on day one. His statements may have offered hope to people working overtime because they may need the money and are striving to get ahead. For some of us, overtime is mandatory. You may notice a slight bump in your pay after working additional hours, but it usually triggers more taxation from the government, nullifying the gains that you've tried to achieve. The reason this happens is because when you earn more money, you are pushed into a new tax bracket. The notion of no tax on overtime seems like a good idea on the surface but there could be drawbacks. Employers could pay less of a base wage to encourage employees to work more overtime, which is highly likely. For some cons to not taxing overtime... Click here