January 21, 2026

2025 Tax Information: Tips and Overtime

The Division of Finance has released tax information on Overtime Deduction Calculation & Tips, including helpful updates related to the “no tax on tips and overtime” change.

For tax year 2025, overtime and tip amounts will not appear on W-2 forms. Employees should reference their final 2025 pay statement instead. These fields will be added to W-2 forms starting in 2026.

Visit the IRS guidance page to confirm your eligibility and deductible amounts. UDOT is not allowed to provide individual tax advice, so employees with tax concerns are encouraged to consult a qualified tax professional regarding their specific situation.