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Level 1
January 22, 2026
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A w2 was automatically imported by an employer I suppose it’s convenient but I can’t view the w w that was imported? I have to calculate my own overtime taxes I paid.

  • January 22, 2026
  • 2 replies
  • 60 views
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Best answer by Opus 17

Expert Reviewed

The reporting of overtime on a W-2 is not required this year -- the IRS is giving employers a pass because the law might have been changed too late for some employers to update their payroll software.  So its optional this year.

 

If your W-2 has already been issued without the overtime information, contact your employer to ask if they are planning to issue an updated W-2.  If not, there should be a manual method for reporting your deductible overtime based on your own calculations. 

2 replies

Level 15
January 22, 2026

You may have to wait until you receive the W-2 from your employer or receive a replacement W-2 from your employer if you need the W-2 to determine your overtime premium. 

 

You may also review your final paystub for the year to determine your overtime premium.

 

For many, the deduction amount is the “half” portion of “time-and-a-half” compensation that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

 

Paystubs may report either:

 

  • the full overtime pay, or
  • the "half" portion.

As an example, if the employee’s regular rate of pay is $20 per hour and the employee worked one hour of overtime, the employee’s full overtime pay would be $30 ($20 x 1.5).  

 

If the full overtime pay is reported, the qualified overtime for deduction purposes is equal to one-third of total overtime: $30 / 3 = $10.

 

The "half" portion and the employee’s qualified overtime would be $10 ($30 overtime pay less $20 regular pay). 

 

For the deduction for qualified overtime: 

 

  • Maximum annual deduction is $12,500 ($25,000 for joint filers).
  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
  • The deduction reduces federal income tax liability, it does not exempt overtime pay from Social Security and Medicare taxes.  Employees will still owe these taxes on their overtime earnings.
  • Taxpayers filing as married filing separately are not eligible for the deduction.
  • The deduction is available for both itemizing and non-itemizing taxpayers.

No Tax on Overtime Explained:  Qualified Overtime Deduction Rules for 2025


 

 

 

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Opus 17Level 15Answer
Level 15
January 22, 2026

Expert Reviewed

The reporting of overtime on a W-2 is not required this year -- the IRS is giving employers a pass because the law might have been changed too late for some employers to update their payroll software.  So its optional this year.

 

If your W-2 has already been issued without the overtime information, contact your employer to ask if they are planning to issue an updated W-2.  If not, there should be a manual method for reporting your deductible overtime based on your own calculations.