so i have a bi weekly paycheck that shows overtime category. w2 came and there is no overtime listed in box 14, company said its straight time not 1.5 so we dont get it

[rcmcjcmc]

union workers get 1.5 but we only get straight time. So the company said we dont qualify for the overtime category for the tax break and didnt put it on the w2

[DianeW777]

Your employer must meet specific Fair Labor Standards Act (FLSA) requirements to qualify.  If your employer doesn't meet these qualifications, then you do not have qualifying overtime.

• Qualified Overtime Deduction Rules

The overtime description is as follows under the One Big Beautiful Bill Act (OBBBA):  'For tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay (generally, the “half” portion of “time-and-a-half” compensation) that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.' (Overtime Received in 2025)

[rcmcjcmc]

I spoke to a turbo tax professional about my question, and he told me to add up all the overtime from the paystubs and take the deduction.  I told him the company told us that we don't get the 14b because we are management, HOWEVER, there is a line item on each paystub that clearly shows OVERTIME, and they pay it and pay it at same hourly rate, NOT time and a half, which is fine.  He said since they acknowledge the word OVERTIME and pay it, they should have it on the w2 in 14 b.  The company said no.  He said to put the amount received on the tax return, the IRS will send a letter because they won't agree with it, because OT isn't on box 14b, but you have each paycheck that shows OT was paid all year so we are correct.  Is this accurate???

[JamesG1 · Accepted solution]

When the Fair Labor Standards Act was enacted in 1938, it provided an exemption from the overtime requirements for bona fide executive, administrative, and professional employees.  It is possible that your employer pays this employee benefit but is not required to make the payment under the FSLA.

If the payment is not required under the FSLA, that would explain why the company is saying that the payment is not qualified overtime.

And as @DianeW777 correctly states above, if the payment does not exceed the regular rate of pay, there is no 'half' portion of 'time-and-a-half' so the payment would not be qualified overtime.

@rcmcjcmc 

[rcmcjcmc]

Hi again,

I just want to ensure I am understanding what you are saying in laymens terms.  

Paystub says OVERTIME.  It is paid as HOURLY PAY, STRAIGHT hour, NOT 1.5.  That is why the company is telling us because it's not 1.5, we don't get it.  My question to IRS agent was since the paystub clearly has a line item that acknowledges OT bi-weekly, do we get to take the deduction or not.  We were told YES.  

Am I understanding that if it's NOT time & half for hours worked over 40, we don't get the deduction?

The company says we do not.  Just want clarification.  The rep told us since its on the pay stub showing a line item acknowledging even though its paid as a straight hourly pay, (not time and half) we can take the deduction, although the w2 doesnt have 14b showing OT separated out.

[JohnB5677]

The short answer is NO. 

If you do not get time and a half for the hours over 40 that you work, you do not qualify for the Overtime Credit.

Please see the IRS publication listed as What is qualified overtime compensation for purposes of the deduction?