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Started By
Message
Is there a cap on the no overtime tax?
Posted on 7/3/25 at 6:50 pm
Posted on 7/3/25 at 6:50 pm
shite, I am about to go back to the field if there is not a cap on no overtime tax.
So the overtime will not go towards your overall tax bracket?
So the overtime will not go towards your overall tax bracket?
8
Posted on 7/3/25 at 6:54 pm to GREENHEAD22
I believe it’s $12,500 but I could be wrong
Posted on 7/3/25 at 6:55 pm to Huskertiger2
So like four months for the average plant operator?
Posted on 7/3/25 at 7:02 pm to Huskertiger2
Okay, that makes sense, it wasn't called out in that other thread by AI so I was curious.
Posted on 7/3/25 at 7:08 pm to GREENHEAD22
quote:So we can be taxed for not working OT?
Is there a cap on the no overtime tax?
Posted on 7/3/25 at 7:15 pm to GREENHEAD22
We need details on how overtime is defined. Exempt employees, non-exempt employees, etc..
Posted on 7/3/25 at 7:17 pm to GREENHEAD22
I believe it’s only no tax on the premium of overtime. Meaning if you make $10 an hour regular time then for overtime you would still be taxed on the $10 an hour but wouldn’t pay taxes on the other $5 dollars an hour. Is this correct?
Posted on 7/3/25 at 7:23 pm to andwesway
Plant operators won't get any exemption, so long as they are paid overtime after the first 8 hours of each day, rather than after 40 hours of each week.
This post was edited on 7/3/25 at 7:24 pm
Posted on 7/3/25 at 7:44 pm to GREENHEAD22
its only the extra pay not taxed on overtime, your normal hourly rate is still taxed at normal rate
Also, $12500 individual/25000 joint cap, also it's a deduction that will lower your tax burden. Im sure some baw is going to be mad when he see there are still taxes on it.
Also, $12500 individual/25000 joint cap, also it's a deduction that will lower your tax burden. Im sure some baw is going to be mad when he see there are still taxes on it.
quote:
The bill also permits workers to deduct income they make from overtime pay with a cap set at $12,500, or $25,000 in the case of a joint return. The deduction similarly phases out for those earning more than $150,000.
This post was edited on 7/3/25 at 7:48 pm
Posted on 7/3/25 at 8:07 pm to Buck_Rogers
That’s how our plant does it. My question though, is what about the off days we have to work that all 12 hours are ot? Does it not apply because we get 4 of ot on regular shifts? I hope I worded that to where it’s understandable cuz I kind of confused myself lol
Posted on 7/3/25 at 8:43 pm to Lugnut
quote:
I believe it’s only no tax on the premium of overtime. Meaning if you make $10 an hour regular time then for overtime you would still be taxed on the $10 an hour but wouldn’t pay taxes on the other $5 dollars an hour. Is this correct?
That makes sense but not sure if that's how it works.
Posted on 7/3/25 at 8:45 pm to Huskertiger2
25k
Posted on 7/3/25 at 8:49 pm to GREENHEAD22
Yeah I’m taking a wait-and-see approach. If there was no cap, I would be making serious bank on my overtime pay. I’m at nearly $20,000 in overtime pay this year already.
$12,500 cap is a little less exciting
But still a great thing.
$12,500 cap is a little less exciting
But still a great thing.
Posted on 7/3/25 at 9:03 pm to etown11
Sounds like you don't fall under the Fair Labor Standards Act (FLSA) requirements, so you will still be taxed on all overtime.
This post was edited on 7/3/25 at 9:04 pm
Posted on 7/3/25 at 9:17 pm to LSU Jax
I have 10,500 in overtime premium this year. I guess that would save me a couple grand? I could hit the income cap but I don't think I am going to work as much the second half of the year if income is just for individual. If they double it for married couples I am good.
I'm kind of glad that it is virtually impossible to put my role on salary, I don't miss those days, sure it has its perks but it also has its drawbacks and it seemed like the drawbacks were more common than the perks.
I'm kind of glad that it is virtually impossible to put my role on salary, I don't miss those days, sure it has its perks but it also has its drawbacks and it seemed like the drawbacks were more common than the perks.
Posted on 7/3/25 at 9:21 pm to GREENHEAD22
Problem is I haven’t found the true definition of where the earnings cap is.
High Income Earners (plant baws with 700 hours OT and a working wife) will not be legible I read. Problem is what is a HIE??
I read it’s about the AGI of the couple filing jointly and I also read it’s a cap of $160,000 for the OT earners income from that one employer.
Plant baws working 700 hours OT make waaaay more than that.
High Income Earners (plant baws with 700 hours OT and a working wife) will not be legible I read. Problem is what is a HIE??
I read it’s about the AGI of the couple filing jointly and I also read it’s a cap of $160,000 for the OT earners income from that one employer.
Plant baws working 700 hours OT make waaaay more than that.
Posted on 7/3/25 at 10:01 pm to GREENHEAD22
"The bill adds a “no tax on overtime” deduction capped at $12,500 for individuals or $25,000 for married couples. Individuals making $150,000 or less would qualify for the maximum deductions. This will be in effect for the 2025 to 2028 tax years, and only applies to federal income taxes, not state or payroll taxes."
Posted on 7/3/25 at 10:14 pm to Patato Salad
On another message board a CPA said it was his understanding that FICA would still be paid on overtime, as well as tips.
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