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se354
New Member

Refund on overtime taxes paid in 2025

 
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2 Replies
rjs
Level 15
Level 15

Refund on overtime taxes paid in 2025

I'm not sure what you mean by "overtime taxes," or how you paid such taxes. Are you looking for the deduction for overtime on your 2025 federal tax return? In TurboTax, after you enter your W-2 you will come to a screen that says "Let's check for uncommon situations." On that screen, check the box for Overtime. TurboTax will then prompt you to enter the information needed to claim the deduction for overtime.


You have to get a statement from your employer showing how much overtime pay you received that qualifies for the deduction for overtime ("qualified overtime compensation"). The information might be on your W-2 or on your last pay stub for 2025. If not you have to get a separate statement from your employer.


The deduction for overtime will be calculated in Part III of Schedule 1-A. There are 3 other deductions that might also be on Schedule 1-A besides the deduction for overtime. The total of all the deductions on Schedule 1-A will be on Form 1040 line 13b.


You can deduct up to $12,500 of qualified overtime compensation. The maximum deduction is gradually reduced if your Modified Adjusted Gross Income (MAGI) is over $150,000 ($300,000 for married filing jointly). The deduction is eliminated if your MAGI is $275,000 or more ($550,000 for married filing jointly).


The deduction for overtime is only allowed for half of your regular pay rate (the "half" of time-and-a-half). For example, if your regular pay is $20 per hour and your overtime pay is $30 per hour (time and a half), only $10 per hour is deductible. The $20 per hour base rate portion of the overtime pay is still taxable. If you are paid more than time and a half, such as double time, you can still only deduct half of your regular rate.


If you are married you must file as married filing jointly to claim the deduction for overtime.

 

SharonD007
Expert Alumni

Refund on overtime taxes paid in 2025

If you are referring to the Overtime Deduction, please review the following resources:

 

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