DianeW777
Employee Tax Expert

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It's not calculated with the maximum overtime number, rather the amount of overtime actually received. 

 

The amount calculated is the result of determining if you have any amount of overtime you would be allowed to use to reduce income. Based on the income in the example and the amount of the reduction, there is not enough overtime to allow any deduction because of the income level and the amount of actual overtime. 

 

If the total overtime were actually over $10,000 then there would be a deduction, with a maximum of $15,000 if the actual overtime were $25,000, or more, in my example. 

 

@Anthonyfru 

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