MindyB
Employee Tax Expert

Retirement tax questions

You can code that as other.  Only box 14 overtime will automatically create a deduction. 

 

Then to enter your overtime in TurboTax Online, after finishing entering your W-2,  continue through the screens until you reach Let's check for other situations. Check the box for Overtime and select Continue. Enter the total of your qualified overtime. TurboTax will calculate your deduction.

 

To qualify for the overtime deduction, you must meet these requirements: 

  • You must be a non-exempt employee who is eligible for overtime under federal law (FLSA). 
  • Your filing status cannot be Married Filing Separately. 
  • Your modified adjusted gross income must be below $150,000 or less ($300,000 for joint filers) to be eligible for the maximum deduction, If your income is over $150,000 ($300,000 for joint filers), then the deduction begins to reduce by $100 for each $1,000 of MAGI over the applicable threshold amount. Once your MAGI hits $275,000 ($550,000 for joint filers), the overtime deduction is not available.
  • The pay must be for hours worked over 40 in a single workweek, and only the overtime premium (the extra "half" in time-and-a-half pay) is qualified for the deduction. 

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