How do I enter overtime pay in TurboTax Online?
Overtime income is typically, but not always, included as income on your W-2. Currently, employers aren't required to list overtime separately on your W-2.
This article explains more about the new tax law on overtime pay.
Follow the steps below based on your situation to enter your overtime.
Overtime is listed in box 14 of your W-2
If you imported or uploaded your W-2:
Review the imported info to make sure Box 14 - Description and Box 14 - Amount matches your W-2.
Continue to the Review your box 14 information screen.
On the row with your overtime, make sure Category shows Overtime or select Overtime from the dropdown menu under Category.
If you typed in your W-2 information:
Enter your W-2, including exactly what appears for overtime in Box 14 - Description and Box 14 - Amount.
Continue to the Review your box 14 information screen.
On the row with your overtime, make sure Category shows Overtime or select Overtime from the dropdown menu under Category.
After you finish entering your W-2, we’ll ask you a few questions about your overtime.
Based on your answers, TurboTax will automatically determine if they qualify and calculate your deduction.
Overtime premium or deductible overtime is listed on a statement from your employer
Look at the statement from your employer. If the statement tells you the “overtime premium”, “overtime deductible for OBBB”, or similar, that’s probably your overtime eligible for this deduction.
Go to the W-2 screen under under Income in the Federal section.
Add or edit your W-2 for your employer where you worked overtime.
After entering your W-2, look for the Let's check for other situations screen.
Check the box next to Overtime.
TurboTax will ask you questions to help you find and enter the right amount.
Total overtime is listed on a statement from your employer
Look at the statement from your employer. If the statement tells you the “total overtime”, “total overtime for OBBB”, or similar, that’s probably your total overtime.
For the new tax law, you can’t deduct the full amount of your overtime. You can only deduct the overtime premium, which is the extra you earn above your regular rate. For example, if you earn $20 per hour, your overtime rate is $30. Your overtime premium is $10.
Go to the W-2 screen under under Income in the Federal section.
Add or edit your W-2 for the employer where you worked overtime.
After entering your W-2, look for the Let's check for other situations screen.
Check the box next to Overtime.
TurboTax will ask you questions to help you find and enter the right amount.
Your overtime is listed on your pay stub
Use your year-end pay stub. It’s the last pay stub you receive for the year, and it shows your total earnings and taxes for the entire year. You should get this at the end of December or in early January.
If you didn't work at your job all year, you'll use the last pay stub you had from your employer, in the Wages & Income section of TurboTax:
Go to the W-2 screen under under Income in the Federal section.
Add or edit your W-2 for the employer where you worked overtime.
After entering your W-2, look for the Let's check for other situations screen.
Check the box next to Overtime.
TurboTax will ask you questions to help you find and enter the right amount.
If you have a complicated situation where you were paid rates other than time-and-a-half or double-time, you can ask your employer or calculate the premium on your own. If this applies to you, follow the instructions below for I know my overtime premium.
I know my overtime premium
You may know your overtime premium even if it wasn’t listed on your W-2 or on a statement from your employer (for example, you did the calculation yourself). If so, follow these steps:
Go to the W-2 screen under under Income in the Federal section.
Add or edit your W-2 for the employer where you worked overtime.
After entering your W-2, look for the Let's check for other situations screen.
Check the box next to Overtime.
Continue and you’ll be asked to enter the amount of your eligible overtime premium.
