no tax on overtime

[RLJ57]

I work per diem for one employer and most of my hours are after hours and paid as overtime. Turbo tax keeps flagging my return as the amount is more than 1/3 of box 1- box 7. My information is correct but I cannot get past it. 

[CatinaT1]

You have to calculate the overtime premium to enter on your tax return. You can only enter the pay that is the half of the time an a half. So if you are paid $20/hour and get $30/hour for overtime pay, only $10/hour is qualified overtime pay. 

Whatever your paystub says for overtime pay, only 1/3 of that is qualified for the deduction.

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

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

[AmeliesUncle · Accepted solution]

---

@RLJ57 wrote:

my hours are after hours and paid as overtime.

---

Being paid overtime rates for "after hours" does NOT qualify for the tax deduction.

The deduction for overtime is for the overtime premium that is required by the Fair Labor Standards Act (FLSA), which is generally only for working over 40 hours in a week.  If your employer pays "overtime" for circumstances that before working over 40 hours in a week, that does not qualify for the deduction (unless it ALSO ends up being for over 40 hours in a week).