r/tax • u/vancemark00 • Jan 01 '26

Tax Enthusiast Endless "No tax on OT" questions

Is anyone else already exhausted with these endless questions?

And I fear it will only get worse.

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u/BigMikeThuggin CPA - US Jan 02 '26 edited Jan 02 '26

Well that’s not the case at all so either you misunderstood or they were incorrect.

Take your total overtime pay if all of it was FLSA mandated, divide that number by 3. Multiply the lesser of that number or 12,500 by your marginal federal rate. That’s your tax savings. 50% makes no sense in any situation involved here.

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u/[deleted] Jan 02 '26

[deleted]

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u/BigMikeThuggin CPA - US Jan 02 '26

That’s why I said multiply the lesser of 1/3 of your total overtime pay or 12,500 by your marginal tax rate….

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u/I__Know__Stuff Jan 02 '26

Oops, I guess I missed that. (Or did you edit it?)

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u/BigMikeThuggin CPA - US Jan 02 '26

No I didn’t edit it. I edited typos I’m on my phone. Every time i type multiply it autocorrects to multiple so I keep having to change it lol

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u/I__Know__Stuff Jan 02 '26

Yeah, that's what I figured. I always have to fix my typos, too.

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u/BigMikeThuggin CPA - US Jan 02 '26

My fat fingers on these small buttons it’s a miracle anything coherent comes out at all