NALC - National Association of Letter Carriers

12/21/2025 | News release | Distributed by Public on 12/21/2025 21:33

USPS notification regarding supplemental W-2 letters on overtime tax deduction

December 21, 2025

The Postal Service has notified NALC that it will mail eligible employees a letter providing supplemental W-2 data for tax year 2025. This letter will inform eligible nonexempt employees of temporary tax deductions for qualified overtime compensation.

Pursuant to the One, Big, Beautiful Bill Act, the act permits eligible nonexempt employees to deduct the premium portion of overtime pay from their federal taxable income. This deduction applies to the portion of overtime pay required by the Fair Labor Standards Act (FSLA). For tax years 2025 through 2028, employees who receive qualified overtime compensation may claim this deduction, subject to applicable limits and eligibility criteria.

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