Is it about 1/3 of the amount on your W-2 that is on your Paycheck stub?
If so, this is because only the .5 or premium on top of your regular pay that you get paid for overtime is the amount th...
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Is it about 1/3 of the amount on your W-2 that is on your Paycheck stub?
If so, this is because only the .5 or premium on top of your regular pay that you get paid for overtime is the amount that is deductible. Your base pay is not. So if your OT on your pay stub is $27,000 and your OT on your W2 is $9,000 that is because that is the deductible amount.
Some more information on No Tax on Overtime Deduction
To qualify the following must apply:
You must be a non-exempt employee eligible for Overtime under the federal Fair Labor Standards Act
The Overtime must be on hours worked OVER 40 hours. (if you live in a state where OT pay is required after 8 hours, this does not apply)
Overtime must be paid at more than your regular hourly rate.
Only the amount that is over your regular hourly rate is deductible. For example, If you make $30 per hour and are paid OT at $45 an hour, you can only deduct $15 per hour as overtime deduction.
Your filing status cannot be Married Filing Separately
Your income must be less than $150,000 if you are single or $300,000 if Married Filing Jointly.
To do so in TurboTax take the following steps:
Enter your W-2
Enter your Overtime in box 14 and select Overtime in the dropdown
Continue through to the overtime questions
You will be given the opportunity to have TurboTax help you calculate your Overtime or You can select you already know the amount.