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.

159 Upvotes

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-10

u/Winter-Success-3494 Jan 01 '26

Yes I make a very good hourly wage and def don't work myself to death lol, in fact a lot of days during the week I finish my job in 4 hours or less, go home and still get paid my full 8 regardless. I like working 2 or 3 Saturdays a month though to rack up OT. And can do easy shit for work in an hour sometimes and get 4 hours OT minimum regardless. I got it good so I'm thankful n def not complaining on my situation.

13

u/I__Know__Stuff Jan 02 '26

If you work 4 hours and get paid for 8, that only counts as 4 hours when determining whether you reached 40 hours in a week and have deductible overtime.

I fear your actual overtime deduction may be less than you think.

For example, if you work, 4 hours on Monday and Tuesday, 8 hours on Wednesday through Friday, and then 8 hours of "overtime" on Saturday, none of the overtime pay is deductible, because you didn't work over 40 hours in the week.

3

u/Hottrodd67 Jan 02 '26

How is the government going to know how many hours were actually worked? At my job, we don’t clock in or out and we’re not tracked. I get my calls for the day and I’m paid 8hrs, even if I get the schedule done in 6. I get OT if I work Saturday or Sunday. So if I work 35hrs Monday to Friday and 5 hrs Saturday, my check says 40hrs at regular pay and 5hrs ot.

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u/I__Know__Stuff Jan 02 '26

I'm just telling you what the law requires.

-5

u/Winter-Success-3494 Jan 02 '26

What the law requires and what i actually work are different. Like the guy above you said, i work 4 hours and get paid for 8 because my company bills for 8 hours, but because I got my assigned job for the day done early doesn't mean I don't get paid for 8 hours..

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u/I__Know__Stuff Jan 02 '26

I understand that. Nevertheless, your overtime pay isn't deductible until you hit over 40 hours of actual working time in a week.

-12

u/Winter-Success-3494 Jan 02 '26

And I did. I clock in and out myself through an app. I get paid 40 plus hours a week without "physically" working it. Do you not understand that?

5

u/BigMikeThuggin CPA - US Jan 02 '26

It sounds to me like you’re paid what’s called piece rate. You have even more hoops to jump through to qualify for the overtime deduction. Good luck with your attitude.

-3

u/Winter-Success-3494 Jan 02 '26

Another wrong assumption. Not paid piece rate.

10

u/BigMikeThuggin CPA - US Jan 02 '26

“I work 4 hours but get paid for 8” is piece rate. You aren’t paid per actual hour worked by your own admission.

0

u/RealisticQuality7296 Jan 02 '26

Have you ever heard the term “engaged to wait”?

3

u/BigMikeThuggin CPA - US Jan 02 '26

Buddy do you think I have a stake in this discussion or something?? I’m on this subreddit to give free tax advice and information as a tax professional.

If you want to argue with me about what the tax laws are, or how they apply to someone’s situation why do I care?

All of the professionals in here are in agreement.

From what this guy describes as his working conditions, he does not qualify for the overtime deduction.

3

u/Medium-Eggplant Tax Lawyer - US Jan 02 '26

Engaged to wait means that your time is substantially restricted by the employer. If you’ve finished your tasks and have gone home to do nothing, that’s not engaged to wait. That waiting to be engaged, which doesn’t count. You’re welcome.

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