overtime pay

[gk]

Hi ,

I have received a w2 for TY 2025. Box 1 says $181120 and box 14 says TT $15566. What is that means? can i deduct this $15566. The amount is not automatically transferring to Sch 1-A line 14 a. Or this means the amount in Box 1 is total YTD income minus amount in box 14 ($15566).

Thanks

GK

[Just-Lisa-Now-]

Scroll down the W2 worksheet and input the amount of OT in the proper section, the program does the math for the deductible portion.

And no, 15566 is not the amount they get to deduct.

[gk]

Hi Lisa, 

I tried that . can you please see the attached screen shot. Please advise

[Just-Lisa-Now-]

Could their total income be over the phase out limit and they dont qualify for the deduction?

[gk]

No. Spouse not working. Only one w2.No other income.

[Just-Lisa-Now-]

try removing the 15k and put the 40k figure in box 14b and see if that makes it flow?

[Just-Lisa-Now-]

wait, are you inputting this on Page 2 of the W2 worksheet?  or is this a table somewhere else in the program?

[gk]

page 2 of w2.

[gk]

i tried that too but no flow to Sch 1A

[Just-Lisa-Now-]

I just tested your W2 on a dummy return, are you sure you've got it marked for Married Joint?    The numbers flow fine for me.

[gk]

yes. could you kindly tell me what you did. Please

[Just-Lisa-Now-]

I didnt do anything special, I just entered the W2 on the W2 worksheet and on page 2 I put the OT in, I tried it both ways, on Line 14b and the alternative on 14d, and both flowed fine.

Im honestly not sure whats tripping you up.    Do both spouses have SSNs?

[gk]

Yes. They both have green card.

[Camp1040]

From the paystub you have shown, it appears the person is paid double time for his total premium which does not include his straight time pay. If this is the case, that the OT premium is stated as double time, then divide the amount in half to get FLSA qualified deduction amount.

[gk]

I agree. but the amount is not flowing to Sch 1A

[gk]

can you please send me the snip of page 2 and sch 1A.

[Camp1040]

What does TT mean in box 14?

My interpertation of the TP paystub is that he received $44k as double time premium, and  that amount does not include his regular hourly wage. The deductibel part of the allowable FLSA overtime for OBBBA should be $22k.

[Just-Lisa-Now-]

Is the wife's SS card marked Not valid for Employment?  When I check that box, the deduction disappears.

[Just-Lisa-Now-]

Camp1040  while I agree that the double time shouldn't be included the same as time and a half, the money should still flow to the Sch 1-A.

[Camp1040]

@Just-Lisa-Now- I kinda missed that little detail!

[gk]

My interpretation is TT means overtime pay deduction and as per w2 that is $15566.

[Camp1040]

It does not seem to match the pay stub!

[Just-Lisa-Now-]

OP said they both have green cards, the wife's SS card may say Not valid for employment, which I believe makes you ineligible. 

[mhs1826]

A few points:

The overtime is not double time. 44120/461=95.70 which is basically $64*1.5=96

I haven't read anything about green card holders be ineligible for work (certain types of jobs yes but otherwise no)

In terms of what to deduct, why not use the amount in box 14 - The employer came up with this number and we have no proof that it is wrong or how they calculated it.

In terms of it not flowing - Maybe delete the W-2 and readd it?

[Just-Lisa-Now-]

I believe I saw it somewhere that both spouses need SSNs that are valid for work....when I check/uncheck that box for the non-working spouse, the credit changes.

weird, now when I go back into that same file and check/uncheck the box, it computes the deduction regardless, so maybe Im wrong.

[gk]

I tried that as well. but NO amount going to Sch 1A. Please see the snip attached

[gk]

i did everything you but no amount flowing to Sch1A. 

[Just-Lisa-Now-]

Is it working correctly on other client files?  Can you open one, plug in some random OT amount and see if 1-A computes? 

[gk]

same issue for every one, total deductible OT is blank.

[Eddy87]

The amount of overtime will be in Box 14 labeled OBBO Premium with money amount.  This figure represents the amount of overtime not taxable.  

The amount shown will not automatically go to Schedule 1A.  When inputting the W2 info, you need to go down to Section VII Deductible Overtime of the W2 input sheet.  On Block 14C enter 3 times the amount shown in Block 14 Other. This will then compute the correct amount and carry it forward to Schedule 1A.  For example, if Block 14 OBBO Premium shows 2,000.00 you will enter 6,000.00 in block 14C so it will generate the 2000.00 tax free.  If you enter 2,000.00 in block 14C the not taxable amount will generate 666.66 and this will show up as the tax-free amount which is incorrect. 

Proseries would need to modify their program to show when we enter the obbopremium amount, that amount will be the actual tax-free amount, and not reply on us entering 3x the amount.

-Copy from older post. Please try that and see.

[gk]

I agree. My problem is the required amount is NOT flowing to Sch 1A. As i mentioned my total OT deduction is 0.

[Eddy87]

Can you try update your Proseries software and see.

[BobKamman]

@Just-Lisa-Now- I've never seen someone with a green card but a Social Security card showing not eligible to work.  I think that's barking up the wrong tree, although maybe a new card was not issued once the green card was issued.  I'm not even sure where I would input "not eligible for employment," but then I don't see many new clients and I generally don't ask to see their Social Security cards.  

The USCIS website states, "Having a Green Card (officially known as a Permanent Resident Card allows you to live and work permanently in the United States."  (No, they did not close the parentheses.)  

[gk]

i did. same issue

[Just-Lisa-Now- · Accepted solution]

@gk close Proseries and go to the Windows programs menu and find ProSeries 2025, under it will be an option to REPAIR UPDATES, see if that helps at all.

[dd4vols]

@Eddy87   That's not the way I interpret what can happen on the W2.  Box 14 can have 2 different figures for Overtime.  If it has TOT OT or something aligning with that and does NOT have the designation TT, then that is the total overtime wages, and would be subject to being divided by 3 on Schedule 1-A.

If it has the designation TT followed by an amount, the employer has already done the calculation for you, AND you would enter that on Schedule 1-A directly in the do not calculate (do not divide by 3), area and that is your qualified overtime deduction.

and @mhs1826 is correct on it being Time & a Half Overtime... employee probably got a raise at some point in the year.

[gk]

Thank God, that worked. Thank you all for all the help and advises. 

Sincerely

GK