MindyB
Employee Tax Expert

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It depends on how your overtime pay is reported on your paystub.  

 

If your overtime is all on one line, and you are paid time-and-a-half, divide the amount by 3 to compute the deductible overtime.  

 

If the overtime premium has a separate line (and is only the half portion of the time-and-a-half) you should enter the total overtime premium as deductible overtime.  

 

Here is an article you may find helpful: No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025