Where do I add my husband overtime?

[Vanessa A · Accepted solution]

To handle the Overtime exclusion in TurboTax take the following steps:

1. Enter your W-2
2. Enter your Overtime in box 14 and select Overtime in the dropdown (if it is not on your W-2 you can use your pay stub to get this information)
   • To calculate your overtime deduction you would take your overtime pay per hour minus your base pay per hour and multiple that by your total overtime hours.  If your employer lists your total overtime you can divide that by 3 to get the OT Premium amount if your OT is paid at time and a half.   If you are paid double time you would divide it by 4.  Only the .5 amount is deductible.
   • So if you work 300 hours of OT and earn $30 per hour for your regular pay and $45 per hour for overtime, you would multiple $15 (45-30) by the 300 hours for a total of $4,500.
   • If you do not want to do the math and you know the full amount you were paid in OT, based on your last paystub, then you can enter the full amount.  TurboTax will calculate it in a later step.
3. Continue through to finish entering your W-2
4. You will be given the opportunity to have TurboTax help you calculate your Overtime or You can select you already know the amount.   You will also be asked questions to be sure you qualify for the OT deduction.

If his employer did not enter it in box 14, then after you enter his W-2, you will select Overtime in the screen that asks if any of these situations apply.

This is a learning year for employers, so the reporting to the IRS is not standardized with every employer.  The IRS is aware and is giving a bit of leeway on the reporting this year. 

To qualify the following must apply:

• You must be a non-exempt employee eligible for Overtime under the federal Fair Labor Standards Act
• The Overtime must be on hours worked OVER 40 hours.  (if you live in a state where OT pay is required after 8 hours, this does not apply)
• Overtime must be paid at more than your regular hourly rate.  
• Your filing status cannot be Married Filing Separately
• Your income must be less than $150,000 if you are single or $300,000 if Married Filing Jointly.