DOUBLE OVERTIME PREMIUM

[cantontaxgroup]

I have brought this to their attention before, but Proseries is still incorrectly computing the Premium portion of Double Ovetime. When you enter a number... say $1000 in Box 14C of the W2... the Doubletime column... it returns $250 as the Overtime Premium. Of course, it should be $500.

We just ignore it and enter the right amount on Line 14(d).

[IRonMaN]

I think you might have things a little confused.  ProSeries is correct.  You might want to check what is required to be paid under the Fair Labor Standards Act which is what the OT subtraction is based.

[kbair]

That is correct.  you only get the .5 time no matter how much the OT premium is.  So double time must be divided by 4.

[cantontaxgroup]

Good job by both of you. I totally overlooked the fact that the "qualified overtime premium deduction" is limited to HALF THE REGULAR PAY RATE FOR EACH HOUR OF OVERTIME.

Makes perfect sense...and I'm glad we found out so early in the season.

Thanks!

[Just-Lisa-Now-]

This is why I take my update CE classes in December, all these little details stay fresh in my mind for the tax season.