01/20/2026
Did you work overtime in 2025? Read this to save money!
It's that time again!!!!!!!!!
"No Tax on Overtime."
If you worked more than 40 hours a week last year, you might owe less money to the IRS.
Here is the simple version of how it works and what I need from you.
1. The Simple Explanation
You know how overtime pay is usually "Time and a Half"?
The "Time" part: This is your normal hourly pay. You still pay normal taxes on this.
The "Half" part: This is the extra bonus money you get for staying late. Under the new rule, you can often take this "bonus" part tax-free!
Example: If you make $20 an hour, your overtime pay is usually $30 an hour.
The first $20 is taxed like normal.
The extra $10 (the premium) is what we can try to deduct from your taxes.
2. The Problem
Because this rule is brand new, the standard tax form you get in the mail (Form W-2) might not show the math clearly. Sometimes employers' group all the money together, making it hard to see exactly how much "extra bonus" money you earned.
3. What I Need You to Do (Very Important!)
To make sure you get every dollar of this tax break, I need you to bring two things to your appointment:
Your W-2 Form: (The standard form you get every year).
Your VERY LAST Pay Stub from December 2025:
Why? This pay stub usually has a "Year to Date" section. It shows exactly how many overtime hours you worked and exactly what your overtime rate was.
Without this pay stub, we might have to guess, and I don’t want to guess with your refund!
Bottom Line: If you worked overtime, dig up that last pay stub of the year! It could save you hundreds (or even thousands) of dollars.
See you soon!
Freddie Diez Tax