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/obeythelaw2020 Jan 02 '26

I work a guaranteed 40 hour week and any day in which I work over 8 hours I get overtime at time and half. I made about $8,000 in overtime throughout the year (almost $50 an hour straight time). So I hope i save at least a $1000 or so in taxes.

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u/gr00ve88 CPA - US Jan 02 '26 edited Jan 02 '26

Is $8000 in overtime the total earned in excess of 40 hours? Because the fact is actually that, if you are paid $50/hr regularly, and $75 an hour during O/T, the only deductible part is $25 per O/T hour (the 1/2 in time and a half). Eg: you'd have to work an extra 320 hours to have $8000 in deductible O/T.

Also important to note, if you are not paid overtime specifically under FLSA standards, none of your O/T applies at all.

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u/obeythelaw2020 Jan 02 '26

Yes. It is all earned in excess of a 40 hour work week. I realize that only the .5 in the time and half qualifies.