Overtime tax deduction calculation

Ourse · ‎March 22, 2026

I had different rates for regular hours and overtime. The hours I worked over 40 weekly were payed at 4.2 times more. What should I put in turbo tax since there are only two options ("Enter total time-and-a-half pay" and "Enter your total double-time pay")?

Thanks!

MaryK4

You will have to calculate your overtime premium. For tax years 2025–2028, you can only deduct the overtime premium—the portion of your pay that exceeds your regular hourly rate—up to $12,500 ($25,000 for joint filers). Since your overtime rate is a unique 4.2x multiplier, the standard TurboTax automated calculations for "time-and-a-half" (1.5x) or "double-time" (2.0x) will not work correctly for you. You should manually calculate your eligible premium and enter it directly.

See How do I enter overtime pay in TurboTax Online?

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