How do I calculate overtime pay

acovington6919a · ‎February 07, 2026

MindyB

It depends. It sounds like your employer did not report your qualified overtime. So, you can compute this using your paystubs. The process depends on how your overtime pay is reported on your paystub.

If your overtime is all on one line, and you are paid time-and-a-half, divide the amount by 3 to compute the deductible overtime.

If the overtime premium has a separate line (and is only the half portion of the time-and-a-half) you should enter the total overtime premium as deductible overtime.

Here is an article you may find helpful: No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025

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MindyB

It depends. It sounds like your employer did not report your qualified overtime. So, you can compute this using your paystubs. The process depends on how your overtime pay is reported on your paystub.

If your overtime is all on one line, and you are paid time-and-a-half, divide the amount by 3 to compute the deductible overtime.

If the overtime premium has a separate line (and is only the half portion of the time-and-a-half) you should enter the total overtime premium as deductible overtime.

Here is an article you may find helpful: No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025