No. The Qualified Overtime Deduction is a deduction from your taxable income, not a credit against your tax owed or a refund amount.
It is possible that your W-2 from your employer reports your overtime premium in box 14. Please refer to your information from your employer to confirm the nature of the W-2 entry.
To report qualified overtime, follow these steps.
Enter the Qualified Overtime Deduction after entering your W-2. At the screen Let's check for other situations, select Overtime. Continue.
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.
Here is an example of qualified overtime. If the employee’s regular rate of pay is $20 per hour and the employee worked one hour of overtime, the employee’s overtime pay would be $30 ($20 x 1.5). The employee’s qualified overtime would be $10 ($30 overtime pay less $20 regular pay).
Then you will see the screen Were you an exempt employee?
You will need to declare whether you earned the overtime pay as an employee:
- exempt from the Fair Labor Standards Act or
- non-exempt from the Fair Labor Standards Act.
You must select I was not an exempt employee to qualify for the deduction.
Click on the hyperlink What's an exempt employee for direction. Exemptions from the minimum wage or overtime standards of the FSLA may also be found here.
See also this TurboTax Help.
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