TurboTax Online has an existing issue where the qualified overtime premium in form 1040 schedule 1-A part III line 14a cannot exceed one third of the W-2 Box 1 wages, or the program does not allow e-...
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TurboTax Online has an existing issue where the qualified overtime premium in form 1040 schedule 1-A part III line 14a cannot exceed one third of the W-2 Box 1 wages, or the program does not allow e-filing of ALL tax returns, both federal and state. This error does not account for qualified overtime premiums that are not included in W-2 box 1 due to deferral under a qualified retirement plan. For employees like myself who work a significant amount of overtime, and also make significant contributions to their pre-tax 401k (i.e. max it out), this is an issue. I am unable to enter the qualified overtime premium furnished to me in a statement by my employer without TurboTax flagging an error and not allowing me to e-file all of my tax returns as a result. I have seen several other entries in TurboTax's Community where other users are reporting the same issue. In the IRS 2025 1040 (and 1040-SR) Instructions, Part III No Tax on Overtime this is covered as follows: "Line 14a. In most cases, the amount on Form W-2, box 1, includes all of your wages and compensation, including your regular wages plus any qualified overtime compensation. Enter on line 14a only the qualified overtime compensation amount that is included on Form W-2. ...If you received qualified overtime compensation that is not included in box 1 of Form W-2 (for example, overtime amounts that are deferred under a qualified retirement plan), enter that amount here. Keep a copy of any document you relied on to support your calculation of qualified overtime compensation."