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January 26, 2026
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Help explain overtime

  • January 26, 2026
  • 1 reply
  • 9 views
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Best answer by KrisD15

Expert Reviewed

This year you can enter the premium portion of your overtime and that amount may be an additional deduction on your tax return, meaning you will not pay Federal Income Tax on that amount. 

 

If your regular pay is 20 and overtime is paid at time-and-one half, your overtime would be paid at 30/hr. The deduction would be 10 dollars (the premium portion) per overtime hour. 

 

Since the law was signed so late in the year, your W-2 may, or may not, report the amount of overtime in Box 14 on your 2025 Form W-2.

 

Enter your W-2 into the TurboTax program and continue through the interview that follows asking about tips and overtime. 

 

If you are eligible for the Additional Deduction, it will be posted on Schedule 1-A and flow to your Tax Return Form 1040 line 13b. 

 

HERE is an IRS link that explains more about the deduction for overtime as well as tips. 

1 reply

KrisD15
KrisD15Answer
Level 15
January 26, 2026

Expert Reviewed

This year you can enter the premium portion of your overtime and that amount may be an additional deduction on your tax return, meaning you will not pay Federal Income Tax on that amount. 

 

If your regular pay is 20 and overtime is paid at time-and-one half, your overtime would be paid at 30/hr. The deduction would be 10 dollars (the premium portion) per overtime hour. 

 

Since the law was signed so late in the year, your W-2 may, or may not, report the amount of overtime in Box 14 on your 2025 Form W-2.

 

Enter your W-2 into the TurboTax program and continue through the interview that follows asking about tips and overtime. 

 

If you are eligible for the Additional Deduction, it will be posted on Schedule 1-A and flow to your Tax Return Form 1040 line 13b. 

 

HERE is an IRS link that explains more about the deduction for overtime as well as tips. 

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