Overtime pay and company bonuses should be tax free. The hard working men and women of this country should not have to pay taxes on their overtime wages and bonuses from their employers. We choose to work overtime and spend less time with our families because we want more money in our paychecks only for the extra money to be taxed like it’s a regular wage. The same thing goes for bonuses, the companies we work for show us gratitude for all the hard work that we do and they give us a bonus only for it to be taxed. So to all the hard working men women out there who are sick and tired of our overtime and bonuses being taxed stand with me on this issue and make this a priority for President Donald J Trump and VP Vance and JFK JR. for the American people
My concerns on this is the ability to abuse the program. I don’t believe overtime shouldn’t be taxed. But I don’t think it should raise your tax bracket to reduce your net income or be added on as gross pay for end of the year tax purpose.
Can you clarify what you mean? Are you saying the overtime pay would raise the persons tax bracket? Overtime work is not mandatory and solely based on volunteering to work hours. That shouldn’t raise the tax bracket because it’s a volunteer position for a person to make more money, in turn they are sacrificing spending time with family to provide for their family so it shouldn’t be taxed hence it won’t put you in a higher tax bracket. But because it’s taxed it has a higher chance to put someone in a higher tax bracket
People are going to be on you about bonuses because: banks. I do think there are some limitations worth noting there as far as income and/or proportion to salary. That said, I absolutely agree with including bonuses, because there are salaried positions (at smaller businesses with less accounting structure) where bonuses are actually understood as compensation for overtime (based on actual results).
Something more realistic would be a different tax rate on overtime and bonuses. They will never fully remove taxes on overtime and bonuses, that’s a huge chunk of the country’s source of money. The government relies too much on income tax.
I agree with this. My paycheck at 80 hours for example I pay roughly 600 dollars in taxes total that includes state. My paycheck with the largest amount of overtime was 130 hours. Working 130 hours I paid 1,277 dollars in taxes. I worked an extra 50 hours and paid double in taxes from working overtime.