Hypothetical Tax Liability of a Worker Regularly Working 45 Hours Compared to a Non-overtime Worker
| Overtime | ||
|---|---|---|
| Pre-Tax Income | $80,000 | $80,000 |
| Wages | $67,400 | $80,000 |
| Overtime Pay | $12,600 | $0 |
| Overtime Tax Exclusion | −$12,600 | $0 |
| Adjusted Gross Income | $67,400 | $80,000 |
| Standard Deduction | −$15,000 | −$15,000 |
| Taxable Income | $52,400 | $65,000 |
| Income Tax | $6,442 | $9,214 |