The “Zero-Tax” Overtime Hack is trending. But is overtime really tax-free-or just misunderstood?
Overtime pay often shows higher tax withholding. That makes people think more tax is being taken.
Overtime is taxed the same as regular wages. There’s no special “zero-tax” rule in the tax code.
Employers withhold extra tax on bonuses or overtime. Withholding ≠ actual tax owed.
If too much was withheld, you may get a refund. If not, you still owe the correct tax.
Adjust W-4, use deductions, credits, and retirement plans. These are legal ways to lower taxes.
Don’t trust viral tax hacks. Talk to a CPA before making paycheck or tax decisions.