OT Tax free

[Chattyme]

Can somebody post screen shots of all the OT screens after checking OT under uncommon but we still need to ask area.

[RachelW33]

Yes, after you select that you have the uncommon situation of overtime, a series of questions will be generated.

Here are the steps to ensure the overtime wages are properly treated on your tax return:

1. On the screen "Let's see if your overtime qualifies as tax-free," either select "Help me calculate my eligible overtime" or "No help needed—I know what to enter."
2. No matter which option you selected in Step 1, the next screen will ask if you were or were not an exempt employee.  Note that you must be non-exempt in order to be eligible for the overtime deduction.
3. Next, if you chose that you know what to enter, you will be asked to enter your deductible overtime from your employer, you can continue on, and TurboTax will compute the deduction, if you are eligible.  If you chose that you needed help, you will be asked what info you have about the overtime and will be guided through the computation.  If your overtime is not on your W-2 or a letter from your employer, it is highly recommended to obtain and save your last paystub of the year.

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

[Chattyme]

thank you! Will it ask for a total amount of overtime made or does it ask for how many hours to and pay rate? Im asking because poay rate changes depending on col or double to triple holiday pay.

[JohnB5677]

It does ask for the amount of pay that is overtime.  

• This sounds like the correct option for you.
• Remember, this does not include the straight time paid during the overtime hours.
• It is the 50% amount above the straight-time pay

[Chattyme]

I have the total amount of  just OT paid out for 2025. Will it ask just for the dollar amount or is there hourly pay and hours asked?

[MindyB]

The interview will ask for the total amount, not hourly pay and hours.  In the steps posted above, you will select no help needed in step 1, and proceed to enter the qualified overtime.