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2 different overtime premium hourly rates

different hourly rates for overtime
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NicolleR1
Employee Tax Expert

2 different overtime premium hourly rates

Some employers list the total qualifying overtime amount in box 14 of their W-2. You can use this amount if listed there.


 

 Box 14 of your W-2 is for informational purposes only. It isn't going to have any effect on your tax return. You will need to enter this amount in the "Overtime" section.


 

 From the Wages and Income screen, after you have entered all your W-2 information, you will come to a screen that says, "Let's check for other situations." You will select the first option for "Overtime."

 The  software will ask you if you need help in calculating eligible over time or if you know what to enter.


 

 If you know how to enter, and you aren't an exempt employee, you will be able to enter the amount of overtime that is eligible to be deducted.


 

 If the amount is not listed in ‌box 14, you can use the last paystub of the year 2025 to figure out the qualified amount of overtime that can be deducted. Use the following guidance to help you out:


 

  1. If you get paid time and a half, you will take the total amount and divide it by three. 
  2. If you get paid at double, you will divide the total amount by 4.
     

See the following link for additional examples:


 

No tax on overtime explained



 

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