2025 Overtime entry in ProSeries

There is a spot on the entry screen to enter 2X OT paid

some employers are reporting the OT on the W2 already. If you have the OT on the w2 you will click "no" on "14c" and input the dollar amount on "14d" if using Proseries Basic. The only problem that I am running is the amount reported on the W2 is not matching the amount on the last check stub and people getting upset. So, I found this questionare that answers many of the questions but a bit complicated to for the employees to understand. hope this helps.

Here's the link

https://osc.ct.gov/wp-content/uploads/2026/01/2025-W2-Q-and-As-Employees_01052026.pdf

Here's the part that I believe most of us will need or will helps us understand.

"1) The following questions and answers are just a few examples of what may be asked regarding this newly passed bill regarding the premium Overtime reporting. If you have additional questions, please reach out to your agency for help. You can also view the IRS document regarding this Bill by clicking the link at the end of this section.

Q1: Why does my W2 Box 14 OBBBTT total not match my pay stub totals for overtime?

• A1 . The One Big Beautiful Bill (OBBBA) deduction applies only to the extra half-time pay (the "premium") of the standard time-and-a-half overtime rate, not the entire overtime payment.  The calculation is as follows: Total Premium OT = (Total Premium Overtime Hours Worked) × (Regular Rate of Pay × 0.5) **The Federal government deems “the .5” as premium overtime.

Q2: Which overtime earnings codes count as premium overtime in the calculation?

• A2. Premium overtime is defined as earnings that are included in the FLSA calculation that is calculated at the federal FLSA rate of 1.5% This limits the earnings codes to: • OFO (Time and a Half OT FLSA) • QOF (Q FLSA Overtime) • QFL (Q104 FLSA Overtime) *While there are other types of 1.5% overtime, those specific earnings codes are related to contractual overtime, which is State of CT specific and falls outside of the Federal FLSA scope.

Q3: Does double time overtime or overtime that is more than 1.5 count included on the W2 in Box 14 OBBBTT?

• A3: No, Premium overtime is defined as earnings that are included in the FLSA calculation that is calculated at the federal FLSA rate of 1.5% Again, this limits the earnings codes to: • OFO (Time and a Half OT FLSA) • QOF (Q FLSA Overtime) • QFL (Q104 FLSA Overtime)

Q4: If the Annual Cap for premium overtime annual deduction is 12,500 for single filers and 25,000 for married individuals filing jointly, why is the dollar amount on my W2 Box 14 OBBBTT more than the annual Cap? 1 | P a g e

• A4. Employers were instructed to enter the full calculated premium overtime amount in Box 14 OBBBTT and not limit the Box 14 OBBBTT amounts to the Cap totals.

Q5: Can I receive a detailed report of what Box 14 OBBBTT totals are in terms of total hours by the earnings codes?

• A5: Yes, OSC will be providing the agencies with detailed spreadsheets that contain the Box 14 OT employee level hours detail. This spreadsheet is limited to the agencies that report their employees OT in hours using the correct FLSA earnings codes: • OFO (Time and a Half OT FLSA) • QOF (Q FLSA Overtime) • QFL (Q104 FLSA Overtime)

Q6: I believe I earned 1.5 FLSA overtime as defined by the OBBBA that is not included on my W2 Box 14 OBBBTT. What should I do?

• A6. You should contact your employing agency. If your employing agency did not pay your overtime using the correct premium overtime code or if your agency paid your overtime as a flat amount instead of using the number of hours worked times your hourly rate, it is possible that the amount is not listed on Box 14 OBBBTT on the W-2. Under these two scenarios, your agency will need to provide you with the correct premium overtime amount to enter on your tax return.

Q7: Does the amount listed on my W2 Box 14 OBBBTT reflect the income phase-out calculation as defined in the OBBBA?

• A7 No, the deduction is reduced if the employee's Modified Adjusted Gross Income (MAGI) exceeds certain thresholds: o $150,000 for single filers. o $300,000 for married individuals filing jointly. o The deduction is reduced by $100 for every $1,000 their MAGI exceed the threshold.  Only your tax preparer can determine your MAGI and reduce the OBBBA deduction by $100 for every $1000 in which your MAGI exceed the threshold.

Q8: I work at a legislative branch agency, and I had OFO overtime this year, why does my W2 not have a Box14 OBBBTT amount included on it?

• A8 Legislative Management, Comm on Equity and Opportunity and Comm Women, Children & Seniors are exempt from the OBBBA and cannot claim an overtime deduction per § 553.12 Exclusion for employees of legislative branches: (a) Section 3(e)(2)(C) of the Act provides an exclusion from the definition of the term “employee” for individuals who are not subject to the civil service laws of their employing agencies and are employed by legislative branches or bodies of States, their political subdivisions or interstate governmental agencies. "

Good pointg about FLSA. Overtime is qualified up to X1.5  .Double time is not required by FLSA and is usually a negotiated benefit.

14B is looking for the time and a half amount, or the double time amount, it will do the math for the deductible portion.

I think were kind of stuck with what the employer gives us for the whole 8 hr day vs 40 hr week for 2025.  2026 W2s should have this covered.

Double time isnt mandated, only time and a half is, so you cant get the doubled portion of double time as a deduction.   Did they skip over that part in your update CEs?