How do I enter my overtime pay in TurboTax?
Below is the full transcript for the above video.
Starting in 2025, most hourly employees can deduct overtime pay up to a limit. This deduction only applies to the difference between your regular rate and overtime rate, known as your premium.
You may be eligible if:
You earned overtime as a nonexempt employee (generally meaning you aren’t salaried)
You aren’t Married Filing Separately
You have a valid Social Security number
And for the maximum deduction, your modified adjusted gross income is $150,000 or less (or $300,000 if you’re filing jointly)
Overtime may be included on your W-2, but it isn’t always listed separately. It might appear in box 14, so check the description to confirm.
If your overtime isn’t there, check your year-end pay stub or request a letter from your employer showing your overtime earnings for the new tax law. No matter what, TurboTax will guide you through entering your amount.
If your overtime is listed in box 14 on your W-2, make sure the box 14 description and amount in TurboTax match exactly what’s on your form, then continue to the review screen and select Overtime as the category. TurboTax will ask questions to determine if you qualify and calculate your deduction.
If your overtime isn’t in box 14 on your form, look for the Let’s check for other situations screen after entering your W-2. Select the box for Overtime and follow the prompts for guidance tailored to you.
