Should a public employee with $150,000 in overtime in 2026 pay no federal income tax on that?
Yes, the less taxes the better.
It is taking blood out of one arm to put in the other arm and spilling 90% of it in the transfer.
The real question should be, “ how does a public employee, working FULL TIME also have enough time to work and GET $150,000 in OT?????
Follow on question, WHY does this usually happen the last 3 years BEFORE they retire when their HIGH THREE YEARS are calculated for their pension????
“Should a public employee with $150,000 in overtime in 2026 pay no federal income tax on that?”
Public employees shouldn’t get overtime. They need to be salaried employees. If they want to work overtime, they can take a Friday off.
I have a relative that made almost that much in overtime last year. He was part of a Federal Task Force. I love the guy…but WE were paying him almost unlimited overtime, and he doubled his salary. And now he gets that tax free? I am not sure that is how people want this to work.
I vote yes - overtime should be taxed.
If you’re paid a salary, you don’t get overtime pay when you work more than 40 hours.
If you work multiple part-time jobs, you don’t get overtime pay, even if you work more than 40 hours altogether. (You also don’t receive benefits.)
Meanwhile, someone with a full-time job who’s paid hourly receives a higher hourly wage if he works more than 40. And now he won’t have to pay taxes on that extra pay?
Yeah, my first thought as well.
I don’t even begin to understand the rationale for not taxing overtime.
$150,000 in overtime? Damn! How many OT hours did this imaginary fed employee work?
Provide 3 examples of anyone in the US Government getting $150,000 in over time pay