topic Have others found the phase out is not working correctly in the online software for the OT premium deduction? in Get your taxes done using TurboTax

Have others found the phase out is not working correctly in the online software for the OT premium deduction?

mel-matt — Sun, 01 Mar 2026 01:15:40 GMT

Re: Have others found the phase out is not working correctly in the online software for the OT pr...

MindyB — Sun, 01 Mar 2026 01:33:29 GMT

I have tested the phase out and found it to be working properly. The OT premium that you earned (not the maximum of $12,500 or $25,000 if married filing jointly) is reduced by $100 for every $1,000 you earn above $150,000 (or $300,000 if married filing jointly).

Example: if your overtime premium that you otherwise would have deducted was $200, and you earned $151,000 as a single, you could only deduct $100.

Here is some information you may find helpful: No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025

Re: Have others found the phase out is not working correctly in the online software for the OT pr...

mel-matt — Sun, 01 Mar 2026 03:25:01 GMT

Thank you for the clear explanation. Turbo Tax AI said it was a reduction in the maximum allowable (i.e. reducing the $12,500 maximum by $100 for every $1,000 of MAGI exceeding $150,000), so I was confused.