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Level 1
April 7, 2026
Question

Overtime added incorrectly

  • April 7, 2026
  • 1 reply
  • 0 views
How do I change it

1 reply

Level 15
April 7, 2026

If you have not electronically filed the tax return, review the IRS form W-2 entry where the Qualified Overtime Deduction was claimed, then enter the correct amount.  

 

Follow these steps:

 

  • Down the left side of the screen, click on Federal.
  • Down the left side of the screen, click on Wages & Income.
  • Click the down arrow to the right of Wages & Salaries.
  • Click to the right of Wages and Salaries (W-2).
  • At the screen Let's check for other situations, select OvertimeContinue

At the screen Let's see if your overtime qualifies as tax-free, select either:  

 

  • Help me calculate my eligible overtime.
  • No help needed-I know what to enter.

For the Qualified Overtime Deduction:    

 

  • Maximum annual deduction is $12,500 ($25,000 for joint filers).
  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
  • The deduction reduces federal income tax liability, it does not exempt overtime pay from Social Security and Medicare taxes.  Employees will still owe these taxes on their overtime earnings.
  • Taxpayers filing as married filing separately are not eligible for the deduction.
  • The deduction is available for both itemizing and non-itemizing taxpayers.

See this TurboTax Help.


 

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