Overtime Code 12TT

[MGC94]

Client has a W2 with the following in box 14:

12TT  1,835.45

From what I can tell, this is a code for overtime compensation (Up until now, I have only seen OT, not TT).

He also has overtime rates of 1.5 times his normal pay for "Holiday Worked" $2,644 YTD, and "Sunday Pay" $8,178 YTD.

Has anyone seen anything like this yet? I don't see why the amount in Box 14 doesn't seem to match up as a 50% premium with the total YTD overtime, or even any combination of the OT/Holiday/Sunday pay totals. From my understanding, the extra pay on holiday/overtime shouldn't count toward the deduction anyway, unless some of those hours were worked when he was over 40 hours that week, but the stub doesn't give that kind of detail.

Thanks in advance for any help.

[Kcolin2023]

Hello, Quick question how did you solve the Doble TT Code Issue on the W2 form? 

[IRonMaN]

The deduction is only for overtime pay in accordance with the Fair Labor Standards Act.  Accordingly, an employee gets a deduction only for the "half" of time and a half pay for hours worked in excess of forty hours.  Sunday pay, holiday pay, be nice to your employee pay and anything like those type of extra pay don't count for the OT deduction.

[kobe22]

Yes, it is qualified OT.  By 2026 employers should be entering the correct amounts. Only OT over 8 hours a day qualify. Sunday OT or Holiday OT do not qualify.  Also, Daily OT does not qualify.  Weekly OT does qualify.

[IRonMaN]

Actually, I believe it is OT for hours worked in excess of 40 hours a week, not over 8 hours a day.

[athaureaux6]

I think the employer was too much proactive. That seems to be the instructions given by the IRS to employers tax year starting in 2026. 

[MGC94]

Thank you for the quick answer. I realize re-reading my question I accidentally deleted a key piece of information from what I had originally typed. His final paystub shows YTD overtime of $3,147. 

I can't account for the fact that box 14 amount is $1,835, but if I calculate the 50% premium based on his YTD overtime total of $3,147, it seems like the OT premium amount should only be $1,049. I'm not sure where the extra $786 in box 14 is coming from, unless some of those holiday/sunday hours were also overtime hours that just aren't stated that way on the pay stub.

[kobe22]

Yea, I've run across the same issue.  I use the amount on the W-2 though.

[BobKamman]

Does anyone ever talk to their clients anymore?  There are lots of us blind men here willing to help you describe an elephant, but the best source is probably the guy who got paid.  Looks like he works a lot of Sundays, does he get double time for Sunday overtime?  

It's OK to ask him, and charge him for the work required to prepare an accurate return.  That's why he's paying you.  Of course if he worked himself to death, his widow might not be as informed.  

[MGC94]

Hi Bob, I did speak to the client about this. He isn't sure himself if any of the holiday/sunday hours were OT. He's going to try calling his employer and seeing how they calculated the time.

I have to say though, I enjoy coming on the forums and talking to the blind men about the elephants, especially when it comes to this year where we have so many new and interesting changes. I find it interesting to see what other people have come across so far. If that upsets you, I don't think you're under any obligation to read my posts, or to waste any of your billable hours complaining about them. 

[BobKamman]

Your snide remark about billable hours tells me all I need to know about your priorities.  My clients, most of them low and middle income, pay what they can afford, and likely less than yours.  

Asking questions without providing all the information you already have from the client?  Don't waste our time.  Others here actually do charge for theirs by the hour.  

[MGC94]

Believe it or not Bob, many of my clients are the same. My snide remark is a direct response to yours, where you insinuated that I must not have spoken to the client, and that I should be asking them these questions and charging them for the time to do so.

I repeat again, no one is forced to "waste their time" on here as far as I know. Anyone who feels they are losing valuable billing time is free to skip right over a post they don't feel is up to the standard.

[ljr]

My friends - it is still January - it will get worse - take a breath and hang in there - we will make it - we always do! Try for a happy tax season (don't pelt me with snowballs lol) notice I said happy not easy. 

[IRonMaN]

"it will get worse"

The not so friendly banter or tax season? 😁

[ljr]

I think the answer to that is both 🤣