topic Box 12b shows code TT but this code is not available in the drop down. What do I do? in Retirement tax questions

Box 12b shows code TT but this code is not available in the drop down. What do I do?

Libragolfer67 — Thu, 12 Mar 2026 00:17:14 GMT

Re: Box 12b shows code TT but this code is not available in the drop down. What do I do?

TomK2023 — Thu, 12 Mar 2026 01:18:17 GMT

Code TT in Box 12 of your W-2 is used to report "Qualified Overtime Compensation." This amount represents the "and-a-half" portion of your overtime pay which is now tax-free at the federal level (up to certain income limits) and qualifies for that deduction.

Do not enter the Box 12 "TT" line (in the W-2 entry screen).
Continue through the "W-2 Interview": Finish entering all other boxes ($1, 2, 16$, etc.) and click Continue
Proceed through the interview screens until the program asks, "Do any of these uncommon situations apply to this W-2?", and Select the box for Overtime pay.
Enter the dollar amount that was printed next to Code TT on your W-2.

This should cause the program to generate Schedule 1-A (the form used to calculate the overtime deduction and making sure that the amount is subtracted from your taxable income on your 1040, even if the Box 12 dropdown was missing the "W" code).

Re: Box 12b shows code TT but this code is not available in the drop down. What do I do?

TomK2023 — Thu, 12 Mar 2026 01:22:53 GMT

Do not enter the Box 12 "TT" line (in the W-2 entry screen).
Continue through the "W-2 Interview": Finish entering all other boxes ($1, 2, 16$, etc.) and click Continue
Proceed through the interview screens until the program asks, "Do any of these uncommon situations apply to this W-2?", and Select the box for Overtime pay.
Enter the dollar amount that was printed next to Code TT on your W-2.