Date: March 18th , 2026

Time: 2pm ET | 1pm CT | 12pm MT | 11am PT

Duration: 60 Minutes

Description:

Overtime pay and tip income have long presented unique challenges in tax reporting and compliance. With the introduction of new deduction provisions under the One Big Beautiful Bill Act (OBBB), tax professionals must now carefully determine which types of overtime compensation and tip income qualify for specific tax treatments and deductions.

This continuing education course provides practical guidance on how these rules apply during tax preparation. Participants will review the criteria used to determine qualifying overtime under Section 7 of the Fair Labor Standards Act, including how the premium portion of overtime pay is calculated and treated for tax purposes.

The course also explores how tip income is classified and reported, emphasizing the distinction between voluntary tips and mandatory gratuity charges. Participants will learn how employers report qualifying income on Form W-2, as well as how self-employed individuals may report tip-related income through Schedule C and Forms 1099-K.

Additional discussion will focus on deduction limitations tied to net income calculations, documentation requirements, and common compliance issues that arise when reporting overtime and tip income.

By the end of the session, participants will have a clearer understanding of how to properly report and calculate deductions for overtime and tip income under current tax rules.

Topics Covered:

• FLSA Overtime Qualification Rules.

• Premium Portion Calculation for Overtime Deductions.

• Employer Reporting Requirements on Form W-2.

• Voluntary Tip Qualification and Reporting Standards.

• Schedule C Deduction Limits and Self-Employed Tip Income Reporting.

Learning Objectives

• Identify what qualifies as overtime compensation under Section 7 of the Fair Labor Standards Act (FLSA).

• Understand how to calculate the deductible premium portion of overtime pay.

• Distinguish between voluntary tips and mandatory service or gratuity charges for tax purposes.

• Analyze income reporting requirements for employees and self-employed individuals receiving tip income.

• Evaluate Schedule C limitations and rules related to tip income deductions.

Credits and Other information:

• Recommended CPE credit – 1.0
• Credits – IRS & NASBA
• Recommended field of study – Tax
• Session Prerequisites and preparation: None
• Session learning level: Update
• Location: Virtual/Online
• Delivery method: Group Internet Based
• Attendance Requirement:  Yes
• Session Duration: 60 minutes

Who Will Benefit:

• CPA
• Enrolled Agents (EAs)
• Tax Professionals
• Attorneys
• Other Tax Preparers
• Finance professionals
• Financial planners

About Our Speaker 

Jason Dinesen (LPA, EA) is an entrepreneur, tax expert, and CPE Presenter. Dinesen brings over 15 years of experience helping individuals and businesses with accounting, bookkeeping, tax preparation, and business advisory in various industries. Dinesen is a regular CPE Presenter at MYCPE ONE. He has coached more than 200k+ accounting, taxes, and HR professionals on various topics of accounting, individual taxation, corporate taxation, and professional ethics. Jason has developed a strong following within the professional community for tax-related subjects. Dinesen is known for sharp tax interpretations, and he quickly brings his analysis of the latest tax updates and IRS guidance to the professional community