I have a question for anyone well versed in taxes here. So I make $36.12 an hour base pay, $54.18 an hour on standard 1.5x overtime rate. So far this year I have 260 hours of overtime so $54.18 X 260 is $14,086.80. From what I can understand, it goes off of the 0.5x portion of 1.5x, so take the difference between my overtime rate and base pay which makes it $18.06. Take $18.06 X 260 which is $4,695.60. My question is, am I doing this right? Also is the $4,695.60 a deduction or just an amount given back? Not a major tax person which is why I’m here.
Question for no tax on over time and how it works for taxes when filing
byu/Soltheturtle intax
Posted by Soltheturtle
3 Comments
It will be the amount not taxed. You’re correct that it’s only the 0.5x portion.
Everything you said was correct. It is a deduction that you can claim if you are eligible.
I’m not positive but I think you have to make 12k or somewhere in that range to even qualify. It’s been a while since I seen any numbers though.
But yes, your math is correct.