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No Tax on Overtime Calculator / W-2 box 12 code TT

W-2 box 12 code TT

If your W-2 has a number next to the letters TT, that is your qualified overtime. Here is what to do with it.

Overtime deduction calculator

Box 12, code TT amount
Find it on your 2026 Form W-2 (box 12, code TT). One W-2 per row.
For most workers this is the AGI on Form 1040 line 11b. Not sure? Use the helper.
MAGI helper

Enter your numbers to see the deduction, each step, and the estimated tax saved.

Estimate only, not tax advice. Your return is decided by the IRS forms and instructions, and a tax professional can check your numbers.

What code TT is

The 2026 Form W-2 adds a new entry in box 12. Code TT carries the total qualified overtime compensation your employer paid you in the year. “Qualified” means the overtime required by the Fair Labor Standards Act, counted only above your regular rate. The employer works it out week by week: hours over 40, times one half, times your regular rate.

What to do with it

  1. Enter the amount on Part III of Schedule 1-A (Form 1040). Report the full TT amount even if it is over the cap.
  2. The schedule applies the $12,500 cap ($25,000 joint) and the MAGI reduction and gives the deduction.
  3. The deduction goes to Form 1040 as an additional deduction, available with the standard deduction too.

With more than one W-2, add the TT amounts. The calculator above takes one row per W-2. For tips, see code TP.

Sources

Last checked . Figures follow the IRS pages above; the law can change, so confirm on irs.gov before you file. This site gives estimates, not tax advice.

Questions

What is code TT on my W-2?

Starting with tax year 2026, box 12 code TT is the total qualified overtime compensation your employer paid you: the part of FLSA overtime above your regular rate.

Why is the amount smaller than my total overtime pay?

It counts only the premium. For time-and-a-half, that is one third of the overtime pay. The straight-time part is in your regular wages.

Can the TT amount be bigger than my deduction?

Yes. Employers report the full amount. The cap ($12,500, or $25,000 joint) and the income phase-out are applied on Schedule 1-A.

My employer left out code TT. What now?

The IRS says you can only deduct qualified overtime that your employer included on a properly furnished W-2, for 2026 and later. Ask your employer for a corrected W-2 (Form W-2c).

My 2025 W-2 has no code TT. Is that a problem?

No. For 2025 employers were not required to report it separately. Use your pay records and the methods in IRS Notice 2025-69.