We want to help prepare you for a smooth tax-filing season ahead! Here’s what you need to know.
For all HII employees: Make sure your name, address, and withholding information are correct, so your W-2 is accurate!
- - Your first and last name on your pay stub must exactly match what’s on your Social Security card
- - Verify your home address using the instructions provided below
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Submit address changes via your HROnline Profile.
Union-represented employees should visit Payroll, Admin 3 or contact your HR representative to make updates.
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- Deadline for updates is January 9, 2026
For overtime-eligible employees:
Some employees may qualify for a new overtime deduction for the 2025 tax year. Eligible employees may be able to deduct a portion of their qualified overtime earnings on their federal income tax return, potentially lowering their taxable income. Look for more information on this subject in January.
What overtime is deductible?
- - Only overtime pay required under the Fair Labor Standards Act (FLSA) is deductible
- - Generally, FLSA requires overtime pay for hours worked over 40 hours in a workweek at a rate of no less than 1½ times the regular hourly rate
- - If you receive overtime pay that is more than 1½ times your regular hourly rate, only the premium time required under FLSA is deductible. For example, if your regular hourly rate is $20 per hour, $30 is the required hourly rate for overtime hours. This means that $10 per hour of overtime may be deductible on your federal income tax return. In this example, any overtime premium pay in excess of $10 an hour would not be deductible on your tax return
- - Overtime deduction is limited to $12,500 per return ($25,000 for joint return)
The Internal Revenue Service (IRS) recently published guidance for this deduction for the 2025 tax year:
- - The IRS did not update the W-2 forms to include overtime information
- - Employers are not required to report overtime separately
- - If you plan to claim this deduction, please keep your final pay stub. The IRS provides instructions on how to calculate the deduction at IRS overtime guidance
- - Final 2025 pay stub dates will be Dec. 18 for all Ingalls employees
Reminder: Your final pay stub is not a replacement for your W-2. You’ll still need your W-2 to file your taxes.
For those expecting to claim exemption from federal income taxes:
If you had no federal income tax liability in 2025 and don’t expect to owe any federal income tax in 2026, you can claim exemption from federal tax withholding for 2026:
- - You must submit a new W-4 by Feb. 17, 2026, even if you were exempt in 2025. Ingalls employees can submit a W-4 or state withholding form for any changes to Payroll, located in Admin 3.
- - If Payroll does not receive a new W-4 by the deadline, your withholding status will change to single with no dependents or deductions starting with the pay period ending Mar. 8, 2026
- - For IRS rules on exempt status, click here to visit: IRS exempt guidance
For questions, contact Ingalls Payroll at 228-935-3091 or 228-935-3719.
