Turbotax Overtime tax deduction calculation

[Ourse]

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!

[rjs · Accepted solution]

You cannot deduct the full 4.2 times your regular rate. You can only deduct the "half" of time and a half. The simplest way to do it is, when TurboTax asks how you want to enter your qualifying overtime, select "No help needed - I know what to enter." Then enter half of your regular hourly rate times the number of hours over 40 hours per week. It will not ask about time and a half or double time.

[Ourse]

Why does Turbo Tax have an option for  time and a half and double time? That is a little confusing. Should I enter my overtime hours into the time and a half or the double time bucket?

[rjs]

If you follow my instructions, and select the "No help needed" option, you will not get the time-and-a-half and double-time buckets. You will get one bucket called "Deductible overtime." That's where you enter half of your regular hourly rate times the total number of hours over 40 hours per week.

TurboTax makes special provisions for time-and-a-half and double-time because those are the most common overtime rates. Having a special place for them makes it a little easier for the majority of workers, who are paid overtime at those rates. In many cases they will not have to do any figuring at all.