Workers claiming the federal "no tax on overtime" deduction should face a simpler filing process for tax year 2026 after the IRS said employers must report the eligible amount on W-2 wage forms in box 12 with code "TT." The deduction, created by President Donald Trump’s One Big Beautiful Bill Act and available for tax years 2025 through 2028, allows eligible filers to deduct up to $12,500 if single or $25,000 if married filing jointly, but only for the overtime premium required under the Fair Labor Standards Act. The benefit begins phasing out at $150,000 of income for single taxpayers and $300,000 for joint returns. More than 29 million taxpayers claimed the deduction for 2025, with an average amount above $3,100. Tax professionals say workers should compare the W-2 figure with pay stubs and request a corrected form if it is wrong, while the change follows a temporary waiver of employer reporting for 2025 because payroll systems and tax forms were not ready.