Well it's not a solution because if they're not overlapping it will just pick the one with higher Z which isn't necessary the one I'm clicking on.
What I did was create a global variable "Touch_Enabled". After I click on something - > Touch_Enabled set to 0, wait 0.1 seconds -> Touch_Enabled set to 1.
My problem wasn't the overlapping actually. "Tap on object" already picks it only if its on top. The problem was when I click on Object 1 and it destroys my Object 1 = it triggers the Object 2 underneath it. Weird but whatever