Disclaimer
An estimator, not advice, and not the IRS
Code TT is an educational calculator for tax year 2026 qualified overtime compensation. It is not tax, legal, payroll, or employment-law advice. It is not affiliated with, endorsed by, or published by the Internal Revenue Service, the Department of Labor, or any tax-software company.
Use it as a check, not a filing figure
For 2026, the amount you may take into account for the deduction is generally the amount reported on Form W-2, Box 12, code TT (and the corresponding 1099 boxes when they apply). If that reported amount is wrong, the remedy is a corrected information return (Form W-2c), not this webpage and not Form 4852.
Your return is your responsibility. Consider a qualified tax professional if your facts are unusual: multiple jobs, bonuses that affect the regular rate, fluctuating workweeks, tipped work, federal employment, or mid-year status changes.
What we simplify
- FLSA coverage and exemption. We do not decide whether you are overtime-eligible. Exempt employees generally have no qualified overtime.
- Regular rate. We approximate it as hourly pay, or weekly salary ÷ hours. DOL Fact Sheet 56A describes additions (for example certain bonuses) that can change the rate.
- Only the FLSA §7 premium. Daily OT, seventh-day premiums, and double-time above 1.5× are not extra QOC.
- Year projection. Multiplying one week by 52 (or by YTD + remaining weeks) is a forecast, not payroll.
- MAGI. Entered MAGI is whatever you type. Statutory MAGI for §225 is AGI increased by certain foreign or territory exclusions.
- Other limits. A valid SSN for employment, joint filing if married, and the statutory years of the deduction still apply.
No warranty
The site is provided as-is. Tax law, IRS forms, and payroll reporting practices change. We may lag. Read the primary sources linked on the methodology page: IRS FS-2026-13, the IRS Q&A, and DOL Fact Sheets 23 and 56A.