Overtime
Who is eligible to deduct Overtime?
Eligibility: You must be a non-exempt employee under the Fair Labor Standards Act (FLSA) to qualify
Can I still Itemize or do I have to use the Standard Deduction?
The deduction is available for both itemizing and non-itemizing taxpayer
Do I have to have a Social Security Number?
YES
Who is your favorite M1?
Sherice
Do I have to pay Social Security on my Overtime in 2025?
Yes you will pay SS and Medicare tax
Are there Overtime Deduction Phase Outs?
yes $150000 and $300000
Will qualified overtime compensation be separately reported to individuals on Form W-2, Form 1099-NEC, or Form 1099-MISC?
Doesn’t qualified overtime have to be separately reported in order for an individual to take the deduction?
Who is your favorite M2?
Heather
The "No Tax on Overtime" provision applies only to federal income tax. Most states have not yet moved to exempt overtime from state-level taxes.
What is the maximum deduction for Married filing Joint?
$25000
What counts as qualified compensation?
Only the Overtime Premium
How many team meetings do we have a week?
2
How do I report my Overtime?
Reporting: For 2025 filings, you may need to use your own pay stubs to calculate the "premium" portion. Starting with the 2026 tax year, employers will be required to report qualified overtime separately on your Form W-2.
What is the Maximum deductions for Single Files?
$12000
Can a Salaried Employee take this deduction?
NO
How many days until 4/15/2026?
69
True or False: You will see a "tax-free" increase in every paycheck starting in 2026.
False-Employers are still required to withhold federal income, Social Security, and Medicare taxes as usual.
Currenly on active on 25-28 years
Is there a maximum hourly pay rate for OT?
No
How many Survyes are the minimum for your bonus?
50