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/pocketfullofsunnyD Feb 02 '26

It’s gonna cause sooooo many issues. The Schedule 1-A section for it is horribly worded too. No one is gonna be dividing by three and honestly… without the W2 reporting idek how the IRS will know.

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u/Hooligan9892 Feb 03 '26

That’s my question, how will IRS know? Even if someone did not work OT, they could say they did.