Overtime - How do I deduct my Overtime when my final paycheck shows I earned $13,605 in OT cumulative dollars? Do I enter the $13,605 as the deduction?

[DoninGA]

After you have completed the W-2, on the following screen check the Overtime box and continue.

[KrisD15]

It depends on what they mean by cumulative. 

If they mean that is the premium, yes, enter that total amount as deductible overtime. 

If they mean that was the total overtime, base AND premium, no, you would need to determine the premium portion. 

Do you know how many hours of overtime you worked? 

Try to determine if they are reporting the overtime premium, the total base and premium or ask your employer if you are not sure. 

Example, if you earn 20/hour, your overtime would be paid at 30/hour if you're paid time and one half for overtime. 

If you worked 10 hours overtime, you might say you earned 300 in overtime, but you earned only 100 of DEDUCTABLE overtime. 

So you need to determine if you earned 40,815 in overtime and 13,605 is the premium portion, or that you earned only 13,605 in overtime and the premium is only 4,535. 

@zdbrosseau

[zdbrosseau]

My end-of-year pay stub clearly lists the total year-to-date (YTD) overtime hours and the corresponding dollar amount as a separate line item. The overtime pay I mentioned in my initial question, which is $13,605, refers to the total amount of overtime I received in 2025. This amount is distinct from my regular hourly base pay. Given this information, can I deduct the full $13,605, or will the deduction be based on the difference between my overtime rate and my regular pay rate?

Additionally, on my W-2, Box 1, it is factoring the overtime in with the regular base wages I received. Does that change anything in terms of claiming the full $13,605 or needing to calculate the difference?

@KrisD15 

[Vanessa A]

No, you cannot deduct the full $13,605.  The deduction is based on the difference between your overtime rate and regular pay.  This is referred to as the premium or .5 amount.  If you receive double time for your overtime only the .5 amount over your regular pay is deductible.  

If your OT rate is time and a half, you will divide the $13,605 by 3 to arrive at the deductible amount.  

If your OT rate is double time, then you will divide by 4 to arrive at the deductible amount.  

Also, the total deduction is limited to $12,500 if you are single or head of household.  If you are married, the total deduction for the entire return is $25,000.