Nontaxable IHSS W-2 OVERTIME

[kobe22]

My client received her 2025 Form W-2 with -0- income for taking care of her dependent son at home (IRS Notice 2014-7).  The W-2 shows $10K in OT. My question is if I can safely assume that since there is no taxable income, there is no OT deduction?..

[George4Tacks]

I know if will be hard to believe, but that logical thought actually would apply to this year's tax situation. The overtime is not not nontaxable. If it were that would make it taxable. 

[BobKamman]

Strict constructionists, however, will point out that there is no requirement in the statute (Code Section 225) that the overtime be included in income.  Congress must therefore have intended to allow the deduction, even if the income is nontaxable. 

[Just-Lisa-Now- · Accepted solution]

Deduct it from what?  They've got no taxable wages.

[George4Tacks]

@BobKamman Could this OT be deducted against some other taxable w-2? 

IHHS W-2 for $14,000 with $10,000 OT

Dayjob W-2 with $20,000 taxable and no OT

Net $20,000 taxable wages and $10,000 OT deduction so only $10,000 taxable wage income? 

Sounds good and with the messy hurried programming for getting this years 1040s processed on time with the disgruntled and short hand workforce and a new director that is in a rush to improve the technology of the IRS, it would problem slide through like something through a goose. 

[kobe22]

Right, that is my thought.  She files jointly and her husband has taxable income. However, since she has no taxable income. I wanted to confirm if the OT is deductible or does not qualify.