Your W-2 box 1 wages reports your total taxable income. The IRS has also announced that they will not be changing the W-2 form for 2025, so your OT will not be reported on your W-2 at all. That means you will report all your taxable income, then you will have to self-report the overtime amount. We don't know what those questions will look like in Turbotax. But Turbotax will never see your pay stub.
The part that is tax-free is only the half-time for working 40 hours or more, not your base pay, and only up to $12,500 per year, and only if your income is less than $150,000.
Meaning that, if you work 60 hours at $20 per hour base pay ($30/hr OT), the tax-free portion would be 20 hours x $10.
