NO TAX ON 33% OF OUR OVERTIME WHICH IS $16,000. No way our refund is only $1,632

Forum|Forum|4 months ago
January 17, 2026
1 reply
1 view

We had $48,000 in o.t. so how can the REFUND OF 33% or $16,000 only be $1,632

TurboTax Online

SteamTrain

Level 15

The Overtime you report is an income DEDUCTION...not a credit.

So if the extra $$ you received from just the overtime portion was $16,000, and IF you in an income situation where are being taxed at the 10% level, then your taxes would be reduced by ~$1,600 relative to what it would have been had the $16,000 been included in taxable income.

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Only the excess received form the overtime is the deduction, not the base pay before the amount added for the overtime.

Example from Google: if you normally get $20/hr and overtime is $30/hr, then only the $10 extra is eligible for the income deduction.

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

a96zrt600Author

Level 2

Have you ever had a job where they take out $700 a week for taxes? Mostly due to working 20 hours a week of o.t. When you make an extra $300 in o.t. and take home ONLY $50 MORE??? WHAT ABOUT THAT EXTRA $250. Call me crazy but with $30,000 worth of o.t. and over $12k taken out for taxes I figured I'd get back MORE

SteamTrain

Level 15

Sorry, but we can't see the full details of what income you've entered, and whether you entered your Overtime details correctly (and shouldn't see, since this is a Public forum).

One thing you should definitely check is to Edit your W-2, make sure all the values match your actual paper W-2 form, and THEN, on the page after the main W-2 page, there is a page with a whole long list of checkboxes. Make sure you've checked the "Overtime" box so that you get the follow-up questions about the overtime pay you have received. Maybe you missed that.

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