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Exempt Compensation Entry

I received a letter from my employer regarding Exempt Compensation related to the One Big Beautiful Bill. I am overtime exempt and they did not include a value on the letter which of course is expected. There is a value though next to Exempt Compensation Amount. I am not finding anything solid on where I would enter this in as it is not overtime but more than likely related to longevity pay or our sick leave buy back. I appreciate any help.

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1 Reply
rjs
Level 15
Level 15

Exempt Compensation Entry

You have to ask your employer what "exempt compensation" means. It's not a common term. Since you are exempt you are not eligible for the deduction for overtime. If the "exempt compensation" is not on your W-2, chances are you don't enter it on your tax return at all. Reread the letter and see if it explains what "exempt compensation" is. If it's not clear, ask your employer to explain it.

 

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