Just want to reconfirm, are you saying because I worked overtime for income I was exempt to paying taxes, I can't use that overtime to receive the benefit from the other job that did have taxable income? When I do a search online using AI, this is what it said:
Yes, you can likely claim the overtime credit (deduction) for the job where you are tax exempt, provided you have federal income tax liability from your second job.
The key factor is your total federal income tax liability for the year, not which specific job the overtime was earned from.
Here's how it works:
The Deduction Applies to Your Total Tax Bill: The "No Tax on Overtime" provision allows you to deduct up to $12,500 of qualified overtime pay from your total federal taxable income when you file your tax return. This reduces your overall federal income tax liability.
You Must Owe Federal Income Tax: To benefit from this deduction, your combined income from both jobs must create a federal income tax liability before the deduction is applied.
Liability from Your Second Job Qualifies You: Even if Job 1 (where you earned the overtime) is tax-exempt, the income and taxes withheld from Job 2 create the liability. The deduction from Job 1's overtime can then be used to reduce the tax you owe on Job 2's income.
Or do I need to update another section within the form that will allow me to receive the overtime deduction for the job that has taxable income even though the overtime was earned by the first job that is tax exempt?
