Attendants working under Consumer Directed Services (CDS) in Texas are set to gain significantly from the new “No Tax on Overtime” provision, effective for the 2025–2028 tax years. This federal deduction allows eligible employees—covered under the Fair Labor Standards Act—to deduct up to $12,500 (or $25,000 for joint filers) of overtime pay from federal taxable income, excluding Social Security and Medicare taxes.
For attendants employed via an FMSA in Texas, who often work beyond 40 hours weekly, this translates into tangible savings. National estimates show average tax cuts of $1,400–$1,750 per worker each year . Employers must begin reporting FLSA overtime separately on W-2 forms by 2025, ensuring compliance and transparency.
The result? More take-home pay for attendants, especially those employed under CDS in Texas through an FMSA, boosting financial stability and morale. This makes CDS roles more attractive—supporting retention and workforce growth in an increasingly competitive caregiving landscape.
