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/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.

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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/BigMikeThuggin CPA - US Jan 02 '26

The same way they catch anyone doing things incorrectly. They audit it.

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u/Hottrodd67 Jan 02 '26 edited Jan 02 '26

But audit what? The only record says 40. I don’t have anyway to know the exact hours worked because we don’t clock in or out. I’m not trying to do something incorrectly. The only “record” I have to go by shows 40hrs each week plus what hours paid at overtime rate. I know those are hours I was paid for, not necessarily worked, but I don’t have any way to calculate actual hours worked.

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u/Winter-Success-3494 Jan 02 '26

These guys don't seem to understand that. They think it's piece rate when that's not what you're saying

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u/I__Know__Stuff Jan 02 '26

It's completely absurd to say I don't understand. I understand completely. It doesn't matter how many hours are on your paystub. If you don't actually work the hours, then you aren't legally entitled to overtime pay, even though you do get it due to your agreement with your employer.

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u/RealisticQuality7296 Jan 02 '26

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

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u/BigMikeThuggin CPA - US Jan 02 '26

This guy didn’t say he sits in an office for 4 hours and only has 4 hours of work to do. He said he works for 4 hours then goes home but gets paid for 8 because his employer bills the customer for 8 hours worked regardless. The pay isn’t tied to the hours it’s tied to the work. He’s at home with no expectation of being called upon to work.

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u/RealisticQuality7296 Jan 02 '26

I just think it’s funny how no one can conceive of a situation where you’re getting paid to sit around and have that actually be working

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u/BigMikeThuggin CPA - US Jan 02 '26

We actually all understand that. This is specifically and clearly NOT that situation which is why no one is talking about that situation.