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What the OBBBA “No Tax on Overtime” Rule Means for Household Employers and Their Employees

Posted by HomeWork Solutions on 10/22/25 10:40 AM

A new federal tax law passed this summer, and it includes a provision that could include tax savings for household employees—but only if you know the detail. The One Big Beautiful Bill Act (OBBBA) includes a “No Tax on Overtime” rule, and although it doesn't directly change household payroll practices, it does impact tax reporting and employee tax credits.

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