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Big beautiful bill-No tax on OT- Plant Work
Posted on 5/22/25 at 1:31 pm
Posted on 5/22/25 at 1:31 pm
I work in a Chem Plant and get alot of OT. I just saw that this bill was passed in the House. If it passes the Senate does this mean that I won’t be paying taxes on all the OT that I work? Does anyone have any idea how this will work? This seems like a great thing for all the Plant workers in and around this area. I haven’t seen this aspect talked about much but to me this would be huge for the Baton Rouge and Lake Charles areas with all the plants up and down the river.
9
Posted on 5/22/25 at 1:34 pm to Nonc Chu Rouge
quote:
Does anyone have any idea how this will work?
Guaranteed it will not work out the way you think and the way it's presented.
It's Washington DC, The haven't stopped lying about their intentions.
Posted on 5/22/25 at 1:43 pm to Nonc Chu Rouge
Watch out. Mingo will come in here mad that you made more money than him
Posted on 5/22/25 at 1:45 pm to Snipe
quote:I’d be happy with any help or improvements in this area and I’d think anyone who is a wage earner would look at this as a win. I’m super optimistic about it and want to read about the details in the bill.
Guaranteed it will not work out the way you think and the way it's presented.
Posted on 5/22/25 at 1:45 pm to Nonc Chu Rouge
quote:
This seems like a great thing for all the Plant workers in and around this area
Welfare queens
Posted on 5/22/25 at 2:11 pm to Nonc Chu Rouge
I better go out and get a sxs and boat before you baws buy them all up with that no taxes on OT money.
Posted on 5/22/25 at 3:20 pm to Nonc Chu Rouge
It's probably not exactly what you're thinking.
It's just no tax on the overtime PREMIUM, meaning not ALL your overtime earnings are untaxed, just the premium portion.
Meaning; say someone making $20/hr works 50 hours.
40 hours * $20 = $800
10 hours * $30 = $300
$1,100 of gross pay from above. The $800 from the first 40 is still fully taxed, but of the $300, only $100 of that is exempt from tax.
$20*10 = $200 (base pay in overtime)
$10*10 = $100 (overtime premium)
Still, $100 more untaxed is $100 more untaxed. My guess is most people think the entire $300 wont be taxed though and thats not the case.
Why they decided to pick and choose overtime and tips is beyond me. So I guess people who are on salary, make commissions or bonuses get zero of this pie (for whatever reason)
It's just no tax on the overtime PREMIUM, meaning not ALL your overtime earnings are untaxed, just the premium portion.
Meaning; say someone making $20/hr works 50 hours.
40 hours * $20 = $800
10 hours * $30 = $300
$1,100 of gross pay from above. The $800 from the first 40 is still fully taxed, but of the $300, only $100 of that is exempt from tax.
$20*10 = $200 (base pay in overtime)
$10*10 = $100 (overtime premium)
Still, $100 more untaxed is $100 more untaxed. My guess is most people think the entire $300 wont be taxed though and thats not the case.
Why they decided to pick and choose overtime and tips is beyond me. So I guess people who are on salary, make commissions or bonuses get zero of this pie (for whatever reason)
This post was edited on 5/22/25 at 3:23 pm
Posted on 5/22/25 at 3:24 pm to Nonc Chu Rouge
isnt it just for people with AGI under $160K? That will rule out a lot of plant baws
Posted on 5/22/25 at 3:27 pm to jamiegla1
I thought the income limit was just on the tips side, not overtime side.
Posted on 5/22/25 at 3:35 pm to thunderbird1100
quote:It is very odd. The tax is an INCOME tax. Why should only certain income be taxed? Seems to favor certain professions which makes no sense.
Why they decided to pick and choose overtime and tips is beyond me. So I guess people who are on salary, make commissions or bonuses get zero of this pie (for whatever reason)
Posted on 5/22/25 at 3:45 pm to thunderbird1100
quote:
Why they decided to pick and choose overtime and tips is beyond me.
Because the people shouting how great it is don’t understand taxes. Reality is, it’ll mainly benefit the wealthy (unless there is an income limitation) and will cost the government tax revenues with no proportionate reduction in government spending.
Posted on 5/22/25 at 3:52 pm to NOSHAU
quote:Kinda like after housing bubble burst or covid, certain industries get bailed out (banks, auto dealers, restaurants) but everyone else can suck wind and deal with it.
Why should only certain income be taxed? Seems to favor certain professions which makes no sense.
Posted on 5/22/25 at 3:54 pm to NOSHAU
quote:
It is very odd. The tax is an INCOME tax. Why should only certain income be taxed? Seems to favor certain professions which makes no sense.
Only thing I can think of is majority of people who get paid hourly or get tipped vote D? Trying to win over votes my best guess.
Seems silly otherwise to just randomly pick and choose certain types of pay like that, how is it really any different from bonus/commission salary exactly? It's just a different class of gross pay.
Posted on 5/22/25 at 4:02 pm to jamiegla1
quote:
isnt it just for people with AGI under $160K? That will rule out a lot of plant baws
Yes. And FICA and state income tax are still paid.
Posted on 5/22/25 at 4:13 pm to Nonc Chu Rouge
Plant baw here and I work about 400 hours of OT per year.
Love this.
Love this.
Posted on 5/22/25 at 4:50 pm to TigersHuskers
It’s probably bad legislation but I can be happy for people benefiting either way. Congrats 
Posted on 5/22/25 at 4:51 pm to Nonc Chu Rouge
Clearly good thing at face value.
Rewarding more time away from life and family…
On the whole of life…Hope you can make up life’s time loss by retiring early (and not just buying things that rust - mindful on time trade off long term value).
All said, hope it works out for best for you.
Rewarding more time away from life and family…
On the whole of life…Hope you can make up life’s time loss by retiring early (and not just buying things that rust - mindful on time trade off long term value).
All said, hope it works out for best for you.
This post was edited on 5/22/25 at 4:52 pm
Posted on 5/22/25 at 6:16 pm to Nonc Chu Rouge
The rich get richer
Posted on 5/22/25 at 6:40 pm to SulphursFinest
quote:
Mingo will come in here mad that you made more money than him
Mingo doesn't want to mess up his pedicure
Posted on 5/22/25 at 6:50 pm to thunderbird1100
quote:
I thought the income limit was just on the tips side, not overtime side.
Both. It’s also capped on how much is excluded.
From Grok:
[quote]Yes, the "One Big Beautiful Bill" includes a provision to eliminate federal income tax on overtime pay for tax years 2025 through 2028. Specifically, it allows nonexempt employees who work overtime under the Fair Labor Standards Act (FLSA) to claim a federal income tax deduction equal to the premium portion of their overtime wages (the "half" portion of time-and-a-half pay), up to $10,000 for single filers or $20,000 for joint filers. This deduction is subject to income limits, phasing out for individuals with adjusted gross income above $100,000 or joint filers above $200,000, and is not available to highly compensated employees. A valid Social Security number is required to claim the deduction, and overtime wages must be reported on Form W-2. However, the deduction only applies to federal income tax, not payroll taxes like FICA. Employers may need to adjust payroll systems to accommodate this change, and employees might adjust their W-4 forms to lower withholding. The provision is temporary, expiring after 2028.[](LINK ]
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