What Do I Enter for Deductible Overtime Compensation?
I have an amount in Box 14 with a code for overtime (FLSA OT Prem, OBBBTT, OT, OT PAY, Prem OT, OT pay qual, Overtime exclusion)
First determine if the amount in Box 14 is your overtime premium or total pay from overtime. The overtime premium is the "half" amount of your "time-and-a-half" overtime, and you can enter it as-is.
For example, if you made $20 an hour, overtime pay is $30, and the "half" amount of your "time-and-a-half" pay is $10. If you had 250 hours of overtime during CURRENT_YEAR, your overtime premium pay would be $2,500.
Some employers might put the total overtime pay. In the example, total pay from overtime would be $30 an hour multiplied by 250 hours or $7,500.
If your employer entered your total overtime pay, divide it by 3 to get the overtime premium. Continuing the example, total overtime of $7,500 / 3 = $2500.
I have an amount in Box 12 with code TT
This is how all employers will report qualified overtime compensation for tax years starting in 2026. If you have an amount in Box 12 with code TT, this is the overtime premium to enter as overtime compensation.
My employer didn't put anything on my W-2 but I have a statement or paystub
You can find your overtime on your last paystub for 2025. Locate your year-to-date overtime amount. This is the total overtime earnings throughout the year. To find the deductible portion, simply divide the total overtime earnings by 3. A year-to-date overtime amount of $7,500 divided by 3 equals a $2500 overtime premium that can be deducted.
I worked double overtime hours
You can only deduct the Fair Labor Standards Act (FLSA) Overtime Rate (Time-and-a-Half) even if your overtime pay is higher.
To calculate your overtime premium for double (2x) overtime hours, divide your total yearly double overtime by 4 to get the overtime premium amount. Add this to your deduction calculated for time-and-a-half (1.5x) overtime to arrive at the total allowable deduction.
First determine if the amount in Box 14 is your overtime premium or total pay from overtime. The overtime premium is the "half" amount of your "time-and-a-half" overtime, and you can enter it as-is.
For example, if you made $20 an hour, overtime pay is $30, and the "half" amount of your "time-and-a-half" pay is $10. If you had 250 hours of overtime during CURRENT_YEAR, your overtime premium pay would be $2,500.
Some employers might put the total overtime pay. In the example, total pay from overtime would be $30 an hour multiplied by 250 hours or $7,500.
If your employer entered your total overtime pay, divide it by 3 to get the overtime premium. Continuing the example, total overtime of $7,500 / 3 = $2500.
I have an amount in Box 12 with code TT
This is how all employers will report qualified overtime compensation for tax years starting in 2026. If you have an amount in Box 12 with code TT, this is the overtime premium to enter as overtime compensation.
My employer didn't put anything on my W-2 but I have a statement or paystub
You can find your overtime on your last paystub for 2025. Locate your year-to-date overtime amount. This is the total overtime earnings throughout the year. To find the deductible portion, simply divide the total overtime earnings by 3. A year-to-date overtime amount of $7,500 divided by 3 equals a $2500 overtime premium that can be deducted.
I worked double overtime hours
You can only deduct the Fair Labor Standards Act (FLSA) Overtime Rate (Time-and-a-Half) even if your overtime pay is higher.
To calculate your overtime premium for double (2x) overtime hours, divide your total yearly double overtime by 4 to get the overtime premium amount. Add this to your deduction calculated for time-and-a-half (1.5x) overtime to arrive at the total allowable deduction.
