Cindy4
Employee Tax Expert

Get your taxes done using TurboTax

The IRS has not finalized the new forms yet, but the deduction will ultimately flow to Part III on the Schedule 1-A of the 1040.  TurboTax will guide you through entering the amount and generate any needed forms.  The employers are not required to report the qualified overtime compensation in a separate box on your W-2 for 2025, they will for 2026, but are being encouraged to report it as an item in box 14 for 2025 or provide a separate statement.  Alternatively, you can track it yourself utilizing pay stubs.  Keep in mind that only "qualified overtime compensation", is deductible and is limited to $12,500 or $25,000 if married filing jointly.  

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