Box 14 on a W-2 is used to report the Fair Labor Standards Act Overtime Premium (FSLA) which is only the extra "half" portion of time-and-a-half pay, not your total overtime wages. This amount is use...
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Box 14 on a W-2 is used to report the Fair Labor Standards Act Overtime Premium (FSLA) which is only the extra "half" portion of time-and-a-half pay, not your total overtime wages. This amount is used to calculate the new federal overtime tax deduction.
For the 2025 tax year, employers can voluntarily use Box 14 on Form W-2 to report qualified overtime compensation (sometimes labeled as "FLSA OT Prem) or Qualified OT. This number is used to calculate the tax deduction for overtime. For single taxpayers, up to $12,500 can be claimed and for Married Filing Jointly up to $25,000 can be claimed for this deduction.
You will only be able to deduct the “overtime premium” portion of your total overtime pay. This is the "half” portion of the “time-and-a-half” overtime pay required by the FLSA.
TurboTax will guide you through calculating your overtime deduction.
See also:
No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025
What is the new tax law for overtime pay?
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