Overtime Deduction and Code TT Calculator

For the federal "no tax on overtime" deduction (tax years 2025 to 2028). Employers can reconcile a year of payroll to the qualified overtime amount for W-2 box 12 code TT. Employees can estimate their deduction. Runs entirely in your browser; nothing is uploaded.

Weekly payroll rows (CSV with columns like Employee, Employee ID, Week Ending, Hours Worked, Regular Rate, OT Hours, OT Pay, FLSA Exempt, State-Only OT Hours)

Open a CSV file

Qualified overtime is only the FLSA half-time premium: 0.5 x regular rate x hours over 40 in the workweek. State daily overtime, contract or union overtime beyond the FLSA, and anything paid to FLSA-exempt employees do not count. W-2s for 2026 are due February 1, 2027.

Not tax, legal or payroll advice. This applies the federal qualified overtime rules as summarized in the README to the numbers you give it, using the regular rate you enter. The FLSA regular rate can have to include nondiscretionary bonuses, shift differentials and similar pay; check yours before filing. It does not cover state income tax treatment, the IRS reporting relief for 2025, or tipped pay. The deduction lowers taxable income; it is not a credit and does not lower Social Security or Medicare tax. Check current IRS guidance or ask a tax professional.