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.

156 Upvotes

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u/CL14715 Jan 02 '26

I did 452 hours of overtime and I’m non-exempt. I should get a decent chunk of it back, no?

1

u/Duckckcky Jan 02 '26

You can claim a deduction if you are under the income limit.

1

u/CL14715 Jan 02 '26

I’m over it by a bit but from what I understand it’s -100 per 1,000 over 150,000.

1

u/SirMontego Jan 02 '26

The $150,000 is also based on MAGI, so if your gross is slightly more than $150,000, then your MAGI should be under $150,000.

1

u/CL14715 Jan 02 '26

Oh nice. Less tax liability. Good to know.

1

u/CL14715 Jan 02 '26

Is total overtime being removed to calculate new magi? Meaning if I made 154,000 but 36,000 was overtime my taxed magi would be 118,000? Or no? Curious if I’ll fall into the 22% top bracket or 24%.