Skip to main content
TurboTax
Community
TurboTax
TurboTax
J
jlud1957
Level 1
January 20, 2026
Question

My yearend paystub reflects $6,468 OT pay. How did you arrive at $2,246?

  • January 20, 2026
  • 2 replies
  • 3 views
What exactly is qualified OT income and how come it is only 1/3 of my actual OT pay?

2 replies

SteamTrain
SteamTrain
Level 15
January 20, 2026

Not sure which numbers you are looking at

BUT

Only the excess over your regular hourly pay is eligible for the exemption from taxation.

 

Thus, if OT was  Time& a half, then only the 1/2 part  isn't taxed....which is 1/3 of the  gross1&1/2 paid.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
VolvoGirl
VolvoGirl
Level 15
January 20, 2026

Overtime is 1½ times your pay.  You only get a deduction for the 1/2 part which is 1/3 of the total overtime.

 

The part that is tax-free is only the half-time for working 40 hours or more, not your base pay, and only up to $12,500 per year, and only if your income is less than $150,000.


Meaning that, if you work 60 hours at $20 per hour base pay ($30/hr OT), the tax-free portion would be 20 hours x $10.

TurboTax flag icon

Unlock tailored help options in your account

Create an account
TurboTax Expert Assist
TurboTax Expert

Get answers to all your tax questions

Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

Explore your options
Terms & ConditionsAccessibility statement
Sitemap
Intuit
TurboTax Credit Karma QuickBooks MailChimp

©1997-2026 Intuit, Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

Security Certification of the TurboTax Online application has been performed by C-Level Security.

By accessing and using this page you agree to the Terms of Use.

About Cookies Manage cookies

TRUSTe nResult Certified e-File C-Level Security Certification
Intuit
TurboTax Credit Karma QuickBooks MailChimp

© 2026 Intuit Canada ULC or its affiliated companies. All rights reserved. Intuit, QuickBooks, QB, TurboTax and ProFile are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.

Copyright © Intuit Canada ULC, 2026. All rights reserved.

About Cookies Manage cookies Privacy setting

Intuit
TurboTax Credit Karma QuickBooks MailChimp

© 2026, Entreprises Intuit Canada ULC ou ses sociétés affiliées. Tous droits réservés. Intuit, QuickBooks, QB, TurboImpôt et ProFile sont des marques déposées d’Intuit Inc. Les modalités, prix, fonctions et options de service et de soutien peuvent changer sans préavis.

© 2026, Entreprises Intuit Canada ULC. Tous droits réservés.

À propos des témoins Gérer les témoins Privacy setting