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Deductions & credits
If your W-2 doesn't have any info for overtime, you will compute it after the W-2 input.
After you input your W-2, continue through the interview, and you will have a list of uncommon situations to choose from- overtime is one of them. Check the box.
Then, follow these steps:
1. On the screen "Let's see if your overtime qualifies as tax-free," either select "Help me calculate my eligible overtime" or "No help needed—I know what to enter."
2. No matter which option you selected in Step 1, the next screen will ask if you were or were not an exempt employee. Note that you must be non-exempt in order to be eligible for the overtime deduction.
3. Next, if you chose that you know what to enter, you will be asked to enter your deductible overtime from your employer, you can continue on, and TurboTax will compute the deduction, if you are eligible. If you chose that you needed help, you will be asked what info you have about the overtime and will be guided through the computation. Since your overtime was not on your W-2, you may have a letter from your employer, and if not, it is highly recommended to obtain and save your last paystub of the year.
The last paystub of the year is important to help you compute this, because only the overtime (the extra "half" in time-and-a-half is deductible.
Here is an article you may find helpful: No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025