How do I know if I am an exempt employee or a non-exempt employee?

If you are a salaried employee, do not have hourly wages, you are not eligible for overtime.

If you are unsure you need to speak with your employer.

If you are a non-exempt employee, your employer has to pay you overtime at time and a half according to the Federal Labor Standards Act when you work over 40 hours a week. If you are not on salary, you are likely a non-exempt employee.  If you are then the "half" in the time and a half is what is deductible for the No Tax on Overtime Deduction.

To qualify 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.
• 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. 
   

To do so in TurboTax take the following steps:

1. Enter your W-2
2. Enter your Overtime in box 14 and select Overtime in the dropdown
3. Continue through to the overtime questions
4. You will be given the opportunity to have TurboTax help you calculate your Overtime or You can select you already know the amount.