Has intuit desktop payroll software service been revised to include the new no tax on overtime wages law?

Good evening, @TanyaS1.

How are you doing today? I hope all is well.

Right now, there’s no official date for when QuickBooks Desktop Payroll will be updated to reflect the new federal law signed in July 2025. This law, part of the One Big Beautiful Bill Act (OBBBA), allows eligible employees to exclude overtime and tip income from their federal taxable income when they file their tax returns, starting with the 2025 tax year.

For now, we recommend continuing to run regular payroll updates to ensure your software stays current with any new tax table changes.

In the meantime, it might be helpful to track overtime and tip wages separately to make tax filing easier for your employees when they claim the deduction on their 2025 returns.

Feel free to reach out anytime if you have questions or need a hand. Have a wonderful day!

There may be no update coming, but not sure. As I understand it, the way this will be implemented is that the employee will initially be taxed and then will conditionally get the tax back when they file their 1040.  If so, then no changes will be needed.

It will need to appear on their W2 so there is going to have to be some change so that it can be accumulated and properly place in whatever new field will be on the W2

Is there anymore updates available on the not taxes on overtime change?  Will there be a software update?

Thanks, 

Thank you for reaching out to the Community forum, @ILY2.

At this time, QuickBooks Desktop (QBDT) Payroll has no official update for the new federal law signed in July 2025, which allows eligible employees to exclude overtime and tip income from federal taxable income.

To help you obtain more details on what's included in the latest QuickBooks payroll update, check out this article: QBDT Payroll Update 22514.

Please stay tuned for announcements. If you have further questions, don’t hesitate to ask!