How do I add my overtime

Forum|Forum|5 months ago
February 4, 2026
2 replies
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TurboTax Online

DoninGA

Level 15

If your overtime income is included in box 1 of the W-2 or is shown in box 14, then after you complete entry of the W-2, on the following screen check the Overtime box and continue.

MinhT1

Level 15

The OBBA has introduced a new deduction for overtime pay from tax year 2025. You may deduct up to $12,500 of qualified overtime premium on your Federal tax return (up to $25,000 for MFJ). The deduction is gradually phased out if your MAGI exceeds $150,000 ($300,000 for MFJ). The deduction is for the overtime premium, which is the portion over your regular pay.

For tax year 2025, your employer may list non-taxable overtime in box 14 of form W-2 with a specific label like "FLSA OT Prem". You might also receive a separate year-end statement giving you the amount. Otherwise, you have to calculate the overtime premium to enter on your tax return.

In TurboTax Online, this is how you enter the qualified overtime premium:

After entering your form W-2, you'll see a screen titled Let's Check for Other Situations
Put a checkmark on Overtime and click Continue
Follow the TurboTax questionnaire to enter your qualified overtime premium
This deduction will transfer to Schedule 1-A of your form 1040, with that amount flowing to line 13b of your form 1040.

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