Remember “No Tax on Overtime”?

[Couchpotato]

Let's say someone make's $20 per hour and earns $10 of overtime pay for an hour. And assume a 20% income tax

For $20 for staight time you get: ($20 * 20% Income Tax) + ($20 * 6.2% FICA Tax) = $5.24 in taxes.

For $20 for staight time and $10 overtime pay you get: ($20 * 20% Income Tax) + ($30 * 6.2% FICA Tax) = $7.86 in taxes.

So more taxes are paid when Overtime Pay is earned.

The tax rates didn't change but the person still pays more in taxas as FICA applies to Overtime Pay. The new law only exempts to income tax portion of Overtime, not FICA.

WW

#1 your math is wrong. 20% of 20 is 4. 6.2% of 30 is 1.86 That's $5.86.

#2 They would have paid the 20% on the overtime before.... 30*20% (6) + 30 * 6.62% (1.86) or $7.86

Im not a mathematician or an economist but Im pretty sure $7.86 is more than $5.86.

 

[struth]

Folks of you sadly live in a blue state you may not see these tax cutsView attachment 1205413

The demafacist can’t let their people keep one extra dollar

No stone unturned!!

 

[MarathonMike]

Both were/are TRAITORS.

In your bizarro world, nothing surprises me. Up is Down, Cold is Hot, Bad is Good you guys see everything ass backwards.

 

[Rogue AI]

Prep the bomb shelters, the apocalypse is coming! Democrats found a tax they didn't like!!!!

 

[TheInfiniteSadness]

Apparently that was a lie.

If you make 20 an hour work an hour of overtime and get paid time-and-a-half ($30), you pay no tax on the “half”— the $10 but you still get taxed on the $20

Does that just apply to federal tax?

 

[WorldWatcher]

Does that just apply to federal tax?

Yes and no.

Federal Income Tax? Yes.

Federal FICA Taxes? No.

State Income Taxes? Varies by State.

WW

 

[hadit]

Yeah.

If you’re offered another shift to work and you make $20 an hour, you don’t think you’re making $160, you think you’re making $240 ($30 X 8 hours). If someone tells you there is no tax on overtime (as the blob did) you think that $240 is tax free. In reality, only the $80 is tax free. I’ll take it...but it was misrepresented. Americans are seeing that this tax season. Hopefully they’ll remember in November.

Yes, they will remember it was a Republican who gave them that break, not democrats, and that democrats fought it.

 

[Roshambo]

$10 is the OT the $20 is standard pay,, time and a half is the rate, not added amount for OT

OT is 30 an hour. That is the rate. Not 20+10

30
learn it

.5 hours of OT is $15
learn it

 

[Roshambo]

Apparently that was a lie.

If you make 20 an hour work an hour of overtime and get paid time-and-a-half ($30), you pay no tax on the “half”— the $10 but you still get taxed on the $20

You keep working "OT" and finally you find yourself in a higher tax bracket and now all the "no tax on 10" goes right back to Uncle Sam

 

[Admiral Rockwell Tory]

$30 is OT.

That is the overtime pay rate. The $10 is the overtime pay. Are you naturally this stupid or are you working on a degree?

 

[Admiral Rockwell Tory]

Since it’s all overtime, “no tax on overtime” would mean that none of it should be taxed...all $30 that was made.

That's because you are ignorant!

 

[Admiral Rockwell Tory]

/----/ Until Trump brought it up—when has any democRAT said overtime tax should be eliminated? WHEN?

Kamala did after Trump and the Dems thought it was a great idea! As soon as she lost, they lost all motivation for it.

 

[Admiral Rockwell Tory]

Well what this epic thread fail simply shows is candycorn doesnt read public laws that have been on the books for 7 months

He can not be taken seriously on any topic

You could have stopped at the highlighted portion.

 

[Superbadbrutha]

The part that's not overtime pay. The part that's only over and above the regular rate is the .5

This isn't rocket science, it's been in defined since the 1930s when the Fair Labor Standards Act was passed.

Overtime laws require employers to pay at least one and a half times the employee’s regular rate—known as time and a half—for overtime hours. For instance, if your regular hourly rate is $20, your overtime pay rate is $30 per hour.

 

[Independent thinker]

Apparently that was a lie.

If you make 20 an hour work an hour of overtime and get paid time-and-a-half ($30), you pay no tax on the “half”— the $10 but you still get taxed on the $20

How stupid are you? The extra was the overtime. And, he's reducing taxes on the little guy. Are you against that?

 

[ThisIsMe]

Apparently that was a lie.

If you make 20 an hour work an hour of overtime and get paid time-and-a-half ($30), you pay no tax on the “half”— the $10 but you still get taxed on the $20

Correct, you are not taxed on the overtime portion of the pay. If you make $20 per hour, after 40, you’ll make $30 per hour. After 40, the $20 per hour figure represents the straight time portion of your pay, the $10 per hours is the overtime portion.

Yes, it was a bit misleading when they said it, but, technically, it is correct.

Also, it only applies up to $150,000/$300,000 and only gives you a max of $12,500/$25,000

But, from what I understand, you can claim the overtime tax credit even if you take the standard deduction, so it could be pretty lucrative.

 

[Couchpotato]

That is the overtime pay rate. The $10 is the overtime pay. Are you naturally this stupid or are you working on a degree?

He takes pills

 

[candycorn]

How stupid are you? The extra was the overtime. And, he's reducing taxes on the little guy. Are you against that?

He lied about how much he was reducing taxes on overtime as it only applies to a small portion of your overtime earnings.

How stupid are you?

 

[Couchpotato]

He lied about how much he was reducing taxes on overtime as it only applies to a small portion of your overtime earnings.

How stupid are you?

The half is the overtime part dum dum.

 

[Lockback]

If I got paid overtime, I'd happily take the tax break. Not sure why some would turn up their noses at it.

Because when they hear the word "Trump", they wet their pants.