The error with Box 12a Code TT (Qualified Overtime Compensation) in TurboTax occurs because some employers began using the new 2026 tax year codes early, while the 2025 TurboTax does not yet have "TT" in the dropdown menu. The code "TT" represents the "and-a-half" premium portion of overtime pay that is tax-free at the federal level.
- Delete the entry- Do not try to select a code from the dropdown menu for the "TT" entry.
- Finish entering all other information from your W-2 (Boxes 1, 2, 16, etc.) and click Continue.
- Continue through the interview until the program asks, "Do any of these uncommon situations apply to this W-2?"
- Choose the checkbox for Overtime pay.
- A follow-up screen will allow you to enter the dollar amount listed next to code TT on your W-2.
- On the screen "Let's see if your overtime qualifies as tax-free," select "No help needed—I know what to enter".
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
