how do I figure overtime

abiede9999 — Fri, 10 Apr 2026 01:45:06 GMT

how do I report overtime

Re: how do I figure overtime

DavidD66 — Fri, 10 Apr 2026 01:53:54 GMT

For 2025, you can deduct up to $12,500 for individuals ($25,000 for joint filers) of Qualified Overtime Compensation (QOC)—the premium "half" part of time-and-a-half pay.

The deduction begins to phase-out at $150,000 ($300,000 for joint filers) of Modified Adjusted Gross Income (MAGI). For 2025, employers are not required to break this out and report separately on Form W-2.

Therefore, you may have to calculate the QOC yourself. If your employer does not provide amount, the IRS will allow you to calculate it using "reasonable methods" from your pay stubs, year-end statement, etc. To determine the amount of your deduction (if you are paid time-and-a-half), take your total overtime pay and divide it by 3.

To enter your qualified overtime compensation:

Go to the W-2 screen under under Wages & Income.
Add or edit your W-2 for your employer where you worked overtime.
After entering your W-2, look for the Let's check for other situations screen.
Check the box next to Overtime.
Continue until you see the Let’s see if your overtime qualifies as tax-free screen.
If your statement has the deductible overtime premium amount:
Select No help needed-I know what to enter.
Look for the Enter your deductible overtime from [your employer’s name] screen.
Enter the overtime premium amount from your statement for Deductible overtime.

The above information is from the TurboTax Help Article

To Enter Qualified Overtime in TurboTax Desktop 2025:

Go to the Wages & Income section and enter your W-2.
After entering your W-2, proceed through the screens until you reach "Let's check for other situations" or "Uncommon Tax Situations".
Check the box next to Overtime and click Continue.
Follow the prompts and enter your overtime amounts from your year-end pay stub or other source. Note that the deduction applies only to the "premium" portion (e.g., the "half" in time-and-a-half).
Indicate if you are a non-exempt employee, which is generally required to claim this federal deduction.

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how do I figure overtime

Re: how do I figure overtime