Jennifer Colon - Tax Professional

Let’s discuss NO TAX ON OT!

Only the overtime premium (the extra half-time you earn above your normal pay) will be tax-free — not your entire overtime check.

Example:�If you normally make $20/hr, your overtime rate is $30/hr.�That extra $10 difference is the “overtime premium.”
�That’s the only portion that won’t be taxed under the new rule.

Keep in mind — your full overtime pay is still subject to Social Security and Medicare taxes.

It’s a great benefit, but as we head into tax season, it’s important to understand how it all works to avoid surprises during tax season!

Pop Quiz Time!
If you get a 1099-NEC in the mail, what does that usually mean?

A) You earned money as an independent contractor
B )You won the lottery 🎉
C) You received unemployment benefits
D) It’s the same thing as a W-2

💡 Drop your answer below ⬇️