Overtime Pay

That's odd that nobody has asked that yet, but I am going with what is on their last paystub for the year.

84,537....

Depending on whether or not their W2 breaks it out between the premium or not.  Only the premium can be reported for the deduction.  If it is not broken out you would need to calculate that amount and then enter it on the W2 screen in the Overtime box, not box 14.

There are actually two separate issues here that I haven't seen discussed together yet in this thread.

1. What to enter in ProConnect's qualified overtime field

The field under Wages/Salaries/Tips labeled "Qualified overtime compensation included on Form W-2, box 1" is misleading. It sounds like it wants the total overtime amount, but per IRS Notice 2025-69, what belongs there is the premium portion only — the "half" in time-and-a-half. For standard time-and-a-half employees, that means you need to pre-calculate before entry:

Total overtime from pay stubs ÷ 3 = amount to enter in ProConnect

If you enter the full overtime amount, the form will deduct the entire amount — significantly overstating the deduction. I confirmed this the hard way on a return this week.

For 2025, since employers aren't required to break out overtime on the W-2, your best documentation sources are year-end pay stubs (YTD overtime column) or a direct request to the employer's payroll department.

2. Make sure pay attention to state laws regarding the exemption 

For Alabama preparers — these are two completely separate benefits and easy to conflate:

• Alabama Act 2024-437 provided a state-level overtime exemption from January 1 through June 30, 2025 only. It expired and was not renewed. Employers were required to report this amount in W-2 Box 14 labeled "EX OT WAGES" and to exclude it from Box 16 (state wages). ProConnect handles this automatically via the Box 16/Box 1 wage differential — you don't need a separate entry for the Alabama exemption if your W-2 data entry reflects the correct state wages.
• Federal OBBBA overtime deduction covers the full year (Jan–Dec 2025) but is the premium portion only (÷3), as described above. Alabama did not adopt this federal deduction.
• Alabama also did not adopt the OBBBA senior deduction ($6,000 for taxpayers 65+). However, since that deduction flows below AGI on the federal return (Schedule 1-A into 1040 line 13b), it never enters Alabama's calculation at all — no Schedule M addback is needed.

Hope this helps anyone working through Federal & Alabama returns with overtime this season.