Each Pink Money Postcard is a short, high-level overview of an important money topic, focused on the basics you really need to know.
What “No Tax on Overtime” really looks like (worked example).
You will first pay taxes on ALL your income, then record your OT on your tax return. Take a tax deduction on the portion related to the “time and a half,” meaning the OT premium.
No tax usually shows up at filing time—not as a huge tax-free paycheck.
You can’t deduct it, if you don’t report it!
