Where is overtime shown on my W-2?

In box 12 with code TT from the 2026 form onward, reporting total qualified overtime compensation for the year.

Why is the box 12 amount bigger than what I can deduct?

Because it is not capped. It reports all your qualified overtime, while the deduction stops at $12,500, or $25,000 on a joint return.

My W-2 has no code TT. What do I do?

Ask your employer for a corrected Form W-2c. From 2026 you can only deduct an amount reported in that box, and a substitute Form 4852 is not accepted here.

Does code TT reduce my taxable wages in box 1?

No. Boxes 1, 3 and 5 still include the overtime in full. The code is informational and the deduction is taken on your return.

No tax on overtime on your W-2

From the 2026 Form W-2, qualified overtime has its own box. Finding it, and checking it, is now part of claiming the deduction.

Box 12, code TT

Employers must report total qualified overtime compensation in box 12 using code TT. The amount is not limited by the deduction cap, so on a year of heavy overtime it will usually be larger than the $12,500 or $25,000 you can claim. That is expected, not an error.

The figure does not reduce boxes 1, 3 or 5. Your wages, Social Security wages and Medicare wages all still include the overtime in full, because the deduction does not exempt it from income or from employment taxes. Code TT is informational.

From 2026, the box is the authority

You may deduct only an amount reported in box 12 code TT. If your employer leaves it out or understates it, you need a corrected Form W-2c. A substitute Form 4852, which is the usual route for a missing or wrong W-2, is not accepted for this purpose.

That makes it worth checking the box as soon as the form arrives rather than at filing time, since a correction depends on the employer.

2025 worked differently

For tax year 2025 there was no required separate reporting, and the forms were not modified. Some employers reported voluntarily in box 14 or on a separate statement. Where nothing was reported, the IRS set out reasonable methods for working the amount out from pay records, including taking one third of an aggregate figure stated at time and a half, and proportional fractions where a higher multiplier was paid.

Employers had penalty relief for 2025 under Notice 2025-62. That relief does not extend into 2026.

The tips equivalent

Tipped workers have their own additions to the 2026 form: box 12 code TP for total cash tips reported to the employer, and a new box 14b for the Treasury Tipped Occupation Code, which also has to appear on the statement you are given. Code TP is not necessarily the same figure as your qualified tips.

Common questions

Where is overtime shown on my W-2?: In box 12 with code TT from the 2026 form onward, reporting total qualified overtime compensation for the year.
Why is the box 12 amount bigger than what I can deduct?: Because it is not capped. It reports all your qualified overtime, while the deduction stops at $12,500, or $25,000 on a joint return.
My W-2 has no code TT. What do I do?: Ask your employer for a corrected Form W-2c. From 2026 you can only deduct an amount reported in that box, and a substitute Form 4852 is not accepted here.
Does code TT reduce my taxable wages in box 1?: No. Boxes 1, 3 and 5 still include the overtime in full. The code is informational and the deduction is taken on your return.