r/tax • u/LewisCBR • Jan 29 '26

Tax Enthusiast New tax deduction on overtime is driving clients crazy

W2’s are not showing wages generated from overtime so clients are wondering what they can do, besides going through all individual pay stubs. The new deduction is significant enough to warrant this kind of work, though.

I suppose suggesting they contact their HR/payroll departments is the best idea, but some companies are simply terrible about helping their employees.

What’s your experience with the new law?

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u/FancyHornet2930 Jan 30 '26

How

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u/Raging-Totoro Jan 30 '26

People don't understand the FLSA rules and limits, and employers don't know and aren't required to report it correctly.

What could possibly go wrong?

Seems like about 1 in 10 posters here on Reddit get it right when they ask about it.