It’s not letting me claim the overtime credit. It says I’m not eligible, but I know I am

[jonathanvaness1]

Overtime credit saying I’m not eligible

[Vanessa A · Accepted solution]

Not everyone qualifies for the No tax on Overtime deduction.  If you meet all of the criteria below, please go back and walk through the steps of your W-2 and the additional questions again.

To qualify for the No Tax on Overtime Deduction the following must apply:

• You must be a non-exempt employee eligible for Overtime under the federal Fair Labor Standards Act
• The Overtime must be on hours worked OVER 40 hours.  (if you live in a state where OT pay is required after 8 hours, this does not apply)
• Overtime must be paid at more than your regular hourly rate.  
• Only the amount that is over your regular hourly rate is deductible.  For example,  If you make $30 per hour and are paid OT at $45 an hour, you can only deduct $15 per hour as overtime deduction.
• The deduction is limited to $12,500
• Your filing status cannot be Married Filing Separately
• Your income must be less than $150,000 if you are single or $300,000 if Married Filing Jointly.