“If overtime stole your nights and weekends last year, at least don’t let it steal your deduction too.”
Greetings, Lynn Spencer here from Killingsworth Spencer.
The OBBBA law passed too late for this year’s W-2 to get a clean, official “overtime” box rolled out everywhere. Don’t panic. You can still claim the deduction; you may need to hunt a little.
Here’s where to look:
- Box 14 for labels like “QUAL OT” or
- A copy of your final paystub from 2025 should indicate the dollar amount of your 2025 overtime pay.
And remember the key rule: it is not the whole overtime paycheck that’s deductible; it is the premium portion – the (“half” in “time-and-a-half.”)
Need help in claiming your deduction correctly?
Killingsworth Spencer is here to help our clients fully understand their options to save taxes today and in the future. We have CPAs, Enrolled Agents, Bookkeepers, and payroll specialists on staff to help our clients with accounting and tax-related matters. For more information or to schedule an appointment, please call us at 770-552-8286. Visit us at www.killingsworthspencerllc.com
Disclaimer: This post is for general information only and should not be taken as legal or financial advice.