No tax on overtime question

[sigpros]

Well looking at my W2 and my employer didn't have a separate column for my overtime. So I went back through every pay check and wrote down my OT premium. My job pays the 1/2 or double time as separate hours.

Example I work 60 hours for the week I will get paid 60 hours straight time and 20 hours OT premium. My question is how do I break down what is 1/2 time and what is double time? For 9 months we were on a crazy schedule where we got 1.5 for the last 2 hours some days and double time for the last 2 hours others. (12) hour schedule. But also 6 days out of the month and all holidays were double time. I am well over the 25k limit on the OT just wondering how to figure it and if there are any tax guys on here that know

 

[brymoore]

This might not help, but box 14 is where my wife found her OT

 

[Keep on]

Do they break down hours of double time and time and a half on your stub? My paystubs break down hours regular, hours 1 1/2 OT and 2.0 OT.
The new rule for no tax on OT only counts for what is required by law, not by union contract or company policy. So only hours over 40 per week qualify for the tax deduction. Best bet might be going back over your time sheets for the year or calendar if you kept track of your hours.
For 2026 employers will be required to provide the OT number for you.

 

[sigpros]

Ya my employer didn't put anything in the boxes for OT. I added all my OT up and I meet the deduction. Guess I will have to see when we start filling the boxes in

 

[sigpros]

Do they break down hours of double time and time and a half on your stub? My paystubs break down hours regular, hours 1 1/2 OT and 2.0 OT.
The new rule for no tax on OT only counts for what is required by law, not by union contract or company policy. So only hours over 40 per week qualify for the tax deduction. Best bet might be going back over your time sheets for the year or calendar if you kept track of your hours.
For 2026 employers will be required to provide the OT number for you.

Nope its just straight hours and then OT premium. And I don't have anything that shows what hours are what. They lump all the 1.5 and double time together.

 

[jryoung]

Do your paystubs include a breakdown of hours? You can leverage that to calculate if your employer did not put them in box14. Or you can push back on your employer and see if they can break it down for you.

 

[X13]

I recently learned that my overtime, 25% of my annual pay, doesn’t qualify as FLSA under the BBBA. Lucky me

 

[rogerthat]

Just fill it out to maximize your refund. Claim ignorance if you get questioned on it. Merica!

 

[sigpros]

Just fill it out to maximize your refund. Claim ignorance if you get questioned on it. Merica!

Talking to the other guys in the shop might be what we have to do. Im over the cap so I don’t see a problem but who knows

 

[cgasner1]

Talking to the other guys in the shop might be what we have to do. Im over the cap so I don’t see a problem but who knows

I did a deep dive into it awhile back I’d recommend just typing into chatbot gpt and see if you qualify

 

[packsaddle]

All i had to do was look at my final pay stub of the 2025 year. I was able to see my overall gross, and my straight time gross and OT gross. So when i went through turbo tax, they took my gross w-2 pay, then asked for the total OT pay, which i had on my final pay check of the year, i didnt have to break down what was 1.5 or 2x...and they did the calculations. I made well over the threshold of both OT and the amount earned, but you still get a deduction, it just depends on how much you are over the 150k. .. entering my OT for deduction more than doubled my return

 

[sigpros]

Ok so a little more into this first off my employer doesnt have the totals on the last pay stub of the year. We also don't have a payroll dept here as it is outsourced. What the hang up is the way we get paid overtime isnt normal like other places and here is the best example I can come up with

Lets say my pay rate is $20 an hour. And I work a 12 hour shift

Normal way OT is paid is employee would get paid:

8 hours at $20
4 hours at $30

so when you put the OT it gets divided by 1/3 makes since

How we get paid is we would get

12 hours at $20
6 hours at $20

So when I would use my "OT" it is already at the third rate. So I should be at the max of $25K but it is taking my "third" amount and dividing it by 3 again. I have someone coming over to discuss it today because they redid our pay check form this year but we are still getting paid like this so we will still have the same issue next year. Any thoughts on a solution?

 

[Nick87]

If your employer breaks it down just look at your last pay stub for the year and there is a YTD number. At least mine always has that regardless who ive worked for.

 

[Nick87]

Just fill it out to maximize your refund. Claim ignorance if you get questioned on it. Merica!

Just fill it out to maximize your refund. Claim ignorance if you get questioned on it. Merica!

Op is from Missouri, not Minnesota.

 

[The_Jim]

View attachment 399894
This might not help, but box 14 is where my wife found her OT

This is where it will be on your W2^^^^

My paystubs starting in 2026 have a separate line showing it.

 

[cgasner1]

Ok so a little more into this first off my employer doesnt have the totals on the last pay stub of the year. We also don't have a payroll dept here as it is outsourced. What the hang up is the way we get paid overtime isnt normal like other places and here is the best example I can come up with

Lets say my pay rate is $20 an hour. And I work a 12 hour shift

Normal way OT is paid is employee would get paid:

8 hours at $20
4 hours at $30

so when you put the OT it gets divided by 1/3 makes since

How we get paid is we would get

12 hours at $20
6 hours at $20

So when I would use my "OT" it is already at the third rate. So I should be at the max of $25K but it is taking my "third" amount and dividing it by 3 again. I have someone coming over to discuss it today because they redid our pay check form this year but we are still getting paid like this so we will still have the same issue next year. Any thoughts on a solution?

Sounds like you make 2x then and won’t be getting any of the tax credit

 

[sigpros]

There is nothing in box 14

They don't break it down on the last paystub

 

[The_Jim]

That's a PITA, their accounting software should have done that automatically... Are you having an accountant do your taxes or are you using turbotax?

 

[sigpros]

That's a PITA, their accounting software should have done that automatically... Are you having an accountant do your taxes or are you using turbotax?

usually do our own but I am at a loss on how to do it. So I guess I will have to pay to have it done. But I don't know what I need to bring them so they can figure it out

 

[brymoore]

There is nothing in box 14

They don't break it down on the last paystub

I don’t think the company have to break down OT on w2s until 2026 W2.