Over time pay deductions

Forum|Forum|4 months ago
February 12, 2026
1 reply
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How to figure out what I can deduct

TurboTax Online

Best answer by Opus 17

Expert Reviewed

Overtime eligible for the deduction is any overtime that is required by the Fair Labor Standards Act (FLSA). That mostly means the half-time when you get paid time and a half for working more than 40 hours in a week. If your rate is $20/hour and you worked 45 hours, your deductible overtime for that week would be $10 x 5 hours =$50. If you get paid more than time and a half, only the "half" is eligible for the deduction because only the half is required by FLSA. If you get extra pay under a contract (shift differential for working night shifts, weekend or holiday pay when you don't go over 40 hours) that is also not eligible because it is a contract benefit, not a requirement under FLSA. If you are a supervisory employee who is "exempt" from FLSA, none of your pay is eligible for the deduction even if you get paid overtime.

Next year your qualifying OT will be reported on your W-2 but for this year you need to figure it out yourself from your pay stubs or other records.

O

Opus 17

Answer

Level 15

Expert Reviewed

Overtime eligible for the deduction is any overtime that is required by the Fair Labor Standards Act (FLSA). That mostly means the half-time when you get paid time and a half for working more than 40 hours in a week. If your rate is $20/hour and you worked 45 hours, your deductible overtime for that week would be $10 x 5 hours =$50. If you get paid more than time and a half, only the "half" is eligible for the deduction because only the half is required by FLSA. If you get extra pay under a contract (shift differential for working night shifts, weekend or holiday pay when you don't go over 40 hours) that is also not eligible because it is a contract benefit, not a requirement under FLSA. If you are a supervisory employee who is "exempt" from FLSA, none of your pay is eligible for the deduction even if you get paid overtime.

Next year your qualifying OT will be reported on your W-2 but for this year you need to figure it out yourself from your pay stubs or other records.