Trump’s popular policy will cut taxes on overtime pay for millions of workers, but the deduction excludes airline and railroad employees, among other groups.
President Trump’s popular “no tax on overtime” policy will help millions of workers save an estimated $90 billion through 2028, but the law is full of fine print and potential confusion over who is eligible for the new savings.
Under the law, the only overtime compensation that qualifies for the new deduction is the extra wages—the “half” of “time and a half” pay—required under the federal Fair Labor Standards Act, or FLSA.
“There’s a big gap between that assumption by many hopeful people and what actually we think is going to happen,” said
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