Fact Check: All overtime income is now tax free

Fact Check: All overtime income is now tax free

Published July 22, 2025
VERDICT
False

# Fact Check: "All overtime income is now tax free" ## What We Know The claim that "all overtime income is now tax free" stems from recent legislativ...

Fact Check: "All overtime income is now tax free"

What We Know

The claim that "all overtime income is now tax free" stems from recent legislative changes under the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. This act introduces a new above-the-line tax deduction for overtime pay, allowing eligible employees to deduct up to $12,500 in overtime income ($25,000 for joint filers) from their federal taxable income from 2025 through 2028 (source-3, source-4). However, it is crucial to note that this deduction does not equate to a complete tax exemption.

The deduction applies only to overtime pay that exceeds an employee's normal wage rate and is subject to the provisions of the Fair Labor Standards Act (FLSA). Furthermore, while the deductible portion of overtime pay is not subject to federal income tax, it remains subject to payroll taxes such as Social Security and Medicare (source-4, source-5).

Analysis

The assertion that all overtime income is tax-free is misleading. The OBBBA provides a temporary deduction rather than a full exemption from taxes. According to the law, only the portion of overtime pay that qualifies under specific guidelines can be deducted from taxable income, and this deduction phases out for higher earners (source-4, source-6).

Moreover, the deduction is limited to a specific amount and is only applicable to overtime pay defined by the FLSA, meaning not all overtime pay qualifies (source-3, source-5).

In evaluating the reliability of sources, the information from Kiplinger and the National Association of Home Builders (NAHB) is credible, as they provide detailed explanations of the law and its implications. However, the claim itself oversimplifies the legislative changes and does not accurately represent the nuances of the new tax deduction.

Conclusion

Verdict: False. The claim that "all overtime income is now tax free" is inaccurate. While the OBBBA introduces a deduction for a portion of overtime pay, it does not eliminate taxes on all overtime income. Employees will still be subject to payroll taxes, and only specific amounts of overtime pay can be deducted from federal taxable income, not exempted entirely.

Sources

  1. H.R.561 - 119th Congress (2025-2026): Overtime Pay Tax ...
  2. S.1046 - No Tax On Overtime Act of 2025
  3. What to Know about “No Tax on Overtime” and “ ...
  4. Tax on Overtime Pay in 2025: What's Happening? | Kiplinger
  5. The 2025 Tax Bill: No Taxes on Overtime, Simplified
  6. No Tax On Overtime Explained - Forbes
  7. Overtime Tax Exemption 2025 Updates
  8. It's Official—No Tax on Tips, No Tax on Overtime Through ...

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Fact Check: Transcript
00:00
I cannot believe that Trump is
cutting Medicaid. Actually,
what I meant to say is that I
can't believe he's not cutting
more of it because medicaid is
a money laundering scheme for
your government.
Congratulations all you
bleeding heart democrats.
Instead of raging against the
machine, you're bending over
for it. Medicaid is jointly run
by the states and the feds and
for every one dollar that your
state allocates to the program,
the Feds turn around and match
that at a level of one 00
percent so one dollar up to
nine dollars. And this money
comes from taxpayers in other
00:34
states. Your money has a 900%
return rate at someone else's
expense. Why wouldn't you
expand the program? Thanks
Obama. That's exactly how we
wound up with way too many
Medicaid recipients in the
first place. Like everything
related to healthcare the
providers are in bed with the
government on this one too
because the government can tax
the providers. 1. Use that
dollar to collect the up to
nine dollars in federal funds
and to reimburse the provider
their original dollar. What?
Robbing the taxpayer to pad the
funding pool leading to
increase reimbursements for
01:06
Medicaid for the providers.
Yeah, if I'm a doctor or a
health care facility, I'm
saying sign me up to that. Yes,
the medical industrial complex
totally has your best interest
in mind so go ahead and swallow
up those vaccines like a good
little comrade. Age me harder
daddy. And speaking of
comrades, do you know how many
people in this country receive
Medicaid that shouldn't? Before
you start screaming, everyone
should get free health care.
Not the argument here. We do
not have universal health care
in the United States. It
doesn't work and since we don't
have it, that means someone is
paying for it and guess what?
There are lower-income families
01:37
who don't qualify for the
benefits but they're taxpayers
and they're being burdened by
this. Back to the point which
is that the system is insanely
abused. I used to do child
support referee work for years
and you would v
Partially True
🎯 Similar

Fact Check: Transcript 00:00 I cannot believe that Trump is cutting Medicaid. Actually, what I meant to say is that I can't believe he's not cutting more of it because medicaid is a money laundering scheme for your government. Congratulations all you bleeding heart democrats. Instead of raging against the machine, you're bending over for it. Medicaid is jointly run by the states and the feds and for every one dollar that your state allocates to the program, the Feds turn around and match that at a level of one 00 percent so one dollar up to nine dollars. And this money comes from taxpayers in other 00:34 states. Your money has a 900% return rate at someone else's expense. Why wouldn't you expand the program? Thanks Obama. That's exactly how we wound up with way too many Medicaid recipients in the first place. Like everything related to healthcare the providers are in bed with the government on this one too because the government can tax the providers. 1. Use that dollar to collect the up to nine dollars in federal funds and to reimburse the provider their original dollar. What? Robbing the taxpayer to pad the funding pool leading to increase reimbursements for 01:06 Medicaid for the providers. Yeah, if I'm a doctor or a health care facility, I'm saying sign me up to that. Yes, the medical industrial complex totally has your best interest in mind so go ahead and swallow up those vaccines like a good little comrade. Age me harder daddy. And speaking of comrades, do you know how many people in this country receive Medicaid that shouldn't? Before you start screaming, everyone should get free health care. Not the argument here. We do not have universal health care in the United States. It doesn't work and since we don't have it, that means someone is paying for it and guess what? There are lower-income families 01:37 who don't qualify for the benefits but they're taxpayers and they're being burdened by this. Back to the point which is that the system is insanely abused. I used to do child support referee work for years and you would v

Detailed fact-check analysis of: Transcript 00:00 I cannot believe that Trump is cutting Medicaid. Actually, what I meant to say is that I can't believe he's not cutting more of it because medicaid is a money laundering scheme for your government. Congratulations all you bleeding heart democrats. Instead of raging against the machine, you're bending over for it. Medicaid is jointly run by the states and the feds and for every one dollar that your state allocates to the program, the Feds turn around and match that at a level of one 00 percent so one dollar up to nine dollars. And this money comes from taxpayers in other 00:34 states. Your money has a 900% return rate at someone else's expense. Why wouldn't you expand the program? Thanks Obama. That's exactly how we wound up with way too many Medicaid recipients in the first place. Like everything related to healthcare the providers are in bed with the government on this one too because the government can tax the providers. 1. Use that dollar to collect the up to nine dollars in federal funds and to reimburse the provider their original dollar. What? Robbing the taxpayer to pad the funding pool leading to increase reimbursements for 01:06 Medicaid for the providers. Yeah, if I'm a doctor or a health care facility, I'm saying sign me up to that. Yes, the medical industrial complex totally has your best interest in mind so go ahead and swallow up those vaccines like a good little comrade. Age me harder daddy. And speaking of comrades, do you know how many people in this country receive Medicaid that shouldn't? Before you start screaming, everyone should get free health care. Not the argument here. We do not have universal health care in the United States. It doesn't work and since we don't have it, that means someone is paying for it and guess what? There are lower-income families 01:37 who don't qualify for the benefits but they're taxpayers and they're being burdened by this. Back to the point which is that the system is insanely abused. I used to do child support referee work for years and you would v

Jul 27, 2025
Read more →
Fact Check: It's actually on TikTok. Welcome to the cookout. You see, our people are now claiming our indigenous status. Look at our brother here. Tax exemption ID. Government ID of the Chihamaru Republic. This is really happening. We got another beloved sister here who received her tribal screening back. Positive Indigenous to the Americans. And even myself, I was able to get my screening done. Positive to the Americans. Ladies and gentlemen, if you want to know how I did this, all I need you to do is share this video, repost it, like, and comment. That's all I need from you, okay? And I'll show you guys how to correct your status back to Indigenous American. I love you. This is what I got on my momma. Let's do it. All right, so we corrected your status. We're not talking about the usual runaround you get where you're paying people and they're sending you templates and you gotta mail all of it, no. All right? What we're doing is we're taking a tribal screening through the Aboriginal Ministry of Justice. These are the requirements you will need to pass that tribal screening. You must currently domicile within the United States, born within America, North, Central, or South, parents or grandparents born within America, directly or indirectly experienced genocide, which for us, slavery, Jim Crow, civil rights, directly or indirectly experienced denationalization. Now, this right here is when they strip you of your nation, if you're black, Negro, Cherokee, mulatto, all type of different names, okay? So the cost of this is $75 for adults, $50 for kids.
Partially True
🎯 Similar

Fact Check: It's actually on TikTok. Welcome to the cookout. You see, our people are now claiming our indigenous status. Look at our brother here. Tax exemption ID. Government ID of the Chihamaru Republic. This is really happening. We got another beloved sister here who received her tribal screening back. Positive Indigenous to the Americans. And even myself, I was able to get my screening done. Positive to the Americans. Ladies and gentlemen, if you want to know how I did this, all I need you to do is share this video, repost it, like, and comment. That's all I need from you, okay? And I'll show you guys how to correct your status back to Indigenous American. I love you. This is what I got on my momma. Let's do it. All right, so we corrected your status. We're not talking about the usual runaround you get where you're paying people and they're sending you templates and you gotta mail all of it, no. All right? What we're doing is we're taking a tribal screening through the Aboriginal Ministry of Justice. These are the requirements you will need to pass that tribal screening. You must currently domicile within the United States, born within America, North, Central, or South, parents or grandparents born within America, directly or indirectly experienced genocide, which for us, slavery, Jim Crow, civil rights, directly or indirectly experienced denationalization. Now, this right here is when they strip you of your nation, if you're black, Negro, Cherokee, mulatto, all type of different names, okay? So the cost of this is $75 for adults, $50 for kids.

Detailed fact-check analysis of: It's actually on TikTok. Welcome to the cookout. You see, our people are now claiming our indigenous status. Look at our brother here. Tax exemption ID. Government ID of the Chihamaru Republic. This is really happening. We got another beloved sister here who received her tribal screening back. Positive Indigenous to the Americans. And even myself, I was able to get my screening done. Positive to the Americans. Ladies and gentlemen, if you want to know how I did this, all I need you to do is share this video, repost it, like, and comment. That's all I need from you, okay? And I'll show you guys how to correct your status back to Indigenous American. I love you. This is what I got on my momma. Let's do it. All right, so we corrected your status. We're not talking about the usual runaround you get where you're paying people and they're sending you templates and you gotta mail all of it, no. All right? What we're doing is we're taking a tribal screening through the Aboriginal Ministry of Justice. These are the requirements you will need to pass that tribal screening. You must currently domicile within the United States, born within America, North, Central, or South, parents or grandparents born within America, directly or indirectly experienced genocide, which for us, slavery, Jim Crow, civil rights, directly or indirectly experienced denationalization. Now, this right here is when they strip you of your nation, if you're black, Negro, Cherokee, mulatto, all type of different names, okay? So the cost of this is $75 for adults, $50 for kids.

Jul 26, 2025
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