Tax free OT

[Chattyme]

How do we enter OT when filing on Turbo Tax?

For me OT isn't at time and 1/2. Depends on the day, holiday, etc.

Sometime it's double or triple time.

I have added up all OT paid for 2025.

What's the next step when entering and will Turbo tax ask about OT?

[DoninGA]

If your overtime payments are included in box 1 of the W-2, then after you complete entry of the W-2, on the following screen check the Overtime box and Continue with this section.

[Chattyme]

thank you. do you know what it asks after OT is checked? like do you have a pic of the next steps?

[RogerD1]

For the overtime pay deduction, only the "half" in "time and a half" is eligible for the deduction.  Also for overtime pay rates other than 1.5x the hourly rate, only 0.5 is eligible for the deduction.  For example, let's say your pay rate is $20/hour.  If you got overtime pay of $30/hour ("time and a half"), then $10 of that pay qualifies for not being taxable.  Now if you got double-time pay of $40/hour of that same pay rate, only $10 of that hourly rate will be deductible.  You employer may have given you a statement or put information in Box 14 of your W2 to let you know the amount of overtime pay that could qualify for the "No tax on overtime" rule.  This information may also be on your last pay stub for 2025.  If they didn't provide this information and you aren't sure how much of the overtime premium qualifies for the deduction, I would contact your employer to help you with that information.

In addition, in TurboTax, once click on the Overtime box shown above and click Continue, you will get a screen that has information about the deduction.  Click Continue there and a screen appears "Let's see if your overtime qualifies as tax-free".  You can click on "Help me calculate my eligible overtime" or "No help needed-I know what to enter", then click Continue.  If you click on "Help me calculate my eligible overtime", you will get asked questions to help you determine what your overtime deduction may be.