That is not an error. You cannot claim the Overtime deduction for wages that were not included in taxable income for the IRS. So the overtime on the W-2 with $0 in box one, you would not be able to deduct. You would need to delete the numbers from box 14. In order to claim the No tax on Overtime deduction, the income must be included in your taxable income and reported to the IRS.
Since your other W-2 has a number in box 1, you can deduct the OT premium you earned from that employer, but you cannot deduct the OT from your exempt income.
Note, the premium or the .5 in time and a half is what is deductible, not all of the overtime. To calculate your overtime deduction you would take your overtime pay per hour minus your base pay per hour and multiple that by your total overtime hours. If your employer lists your total overtime you can divide that by 3 to get the OT Premium amount. If you are paid double time you would divide it by 4. Only the .5 amount is deductible.
So if you work 300 hours of OT and earn $30 per hour for your regular pay and $45 per hour for overtime, you would multiple $15 (45-30) by the 300 hours for a total of $4,500.
Remember, this is a deduction NOT a credit. This means it will lower your taxable income, which can lower your tax liability. You will NOT see a refund in the amount of the OT you enter. The OT is reported on Schedule 1-a, line 14a with the total amount you are qualified for reported on line 21 of Schedule 1-2.
To see your form 1040 you can switch to forms mode if you are using TurboTax Online or if you are using the online version you can select Tools>>Tax Tools>> Preview my 1040.
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