Phase out for overtime deduction

[frfaris]

I am filing MFJ and my spouse received OT pay in 2025.  Our AGI is only slightly over the $300,000 amount which is when the deduction starts to phase out.  TurboTax calculated the OT deduction correctly based on her end-of-year paystub, but it then reports that the maximum deductible amount for us is $0 due to the phaseout.  By my calculation, the maximum deductible amount should be something less than IRS $25,000 MFJ maximum but not zero since our AGI falls in the phaseout range.  Any help explaining why Turbotax is not letting claim any amount for this deduction?

[ThomasM125]

One possibility is on the screen that says Were you an exempt employee at (name of employer) you answered I was an exempt employee by mistake. You will see that screen after you indicate that you have overtime earnings after you enter your W-2 form.

[veggiegal]

Hello - I am having the same issue, however I am filing as Head of Household. My modest overtime *should* be fully deductible since my MAGI is around $200,000 and complete phase out is not until MAGI of $275,000. But Turbo Tax deluxe is saying my deductible OT is $0 due to phase out limits, which appears incorrect to me. How do I fix this? 

[MarilynG1]

Check the calculations on Schedule 1-A for your Overtime Deduction calculation.  If you think it's incorrect, step through the interview section again to check your entries/selections. 

@veggiegal 

[veggiegal]

Thank you for your response, @MarilynG1 

I looked for this in the "Forms" section Schedule 1-A is not there at all, oddly.  

Does Turbo Tax leave it out completely if it thinks I do not qualify?  There seems to be an error behind the scenes in calculation, TurboTax @intuit 

If MAGI is $200,000 my overtime should still qualify (and deduction should not be $0 as indicated).  And, Schedule 1-A should appear in the forms.

How do I fix this?

I will look at Schedule 1-A on the IRS website and do a manual calculation using the PDF