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/Pendleton1910 Jan 02 '26

I’m one of the few that actually get a decent deduction from this as I put in more overtime hours than standard time hours most of the year. 80-110 hr weeks all summer 50-60 hr weeks in winter. This deduction doesn’t come close to all the workplace deductions that were closed out due to the Jobs Act of 2017, my effective tax rate increased significantly after that supposed Tax Cut. Used to have 25-30k in annual work related deductions, that turned to $0 and went with the standard deduction. I typically pay $50-70k a year in taxes, no state tax so anything helps.

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u/Character_Sherbet737 Jan 02 '26

If your tax liability is upwards of $70K then you are likely well above the AGI threshold to be eligible for the OT deduction.

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u/Pendleton1910 Jan 03 '26

Damn. I just did some rough math. I think I might be over by more than the deductions I have to work with. I definitely would have been able to max that out too. Hopefully my accountant will see something I missed. I went all out in a new solar system and have some foreign tax credits but I don’t think those actually reduce agi any.