Employer did not report qualified overtime

Why box 12 code TT may be missing

The IRS is explicit about what a missing code TT amount means for tax year 2026. Under section 225(a), an employee can deduct only qualified overtime compensation that the employer included on a properly furnished Form W-2. An amount that is not reported in box 12 code TT may not be used for the deduction. If your employer omitted or understated the amount for 2026, your path is a corrected Form W-2c. Pay stubs alone cannot support the deduction, and a substitute Form 4852 cannot be used. Source: IRS FS-2026-13, questions 20, 22 and 23.

There are four reasons a code TT amount can be missing. Each one comes from IRS FS-2026-13.

1. The W-2 is for tax year 2025. Separate reporting in box 12 code TT starts in tax year 2026 (question 6). See the tax year 2025 section.
2. You are exempt from FLSA overtime. A worker who is not eligible for FLSA overtime does not receive qualified overtime compensation, so code TT is correctly blank (question 4).
3. Your overtime pay was not required by the FLSA. Overtime paid only under a state law, a union contract or an employer policy is not qualified overtime compensation, so code TT is correctly blank (questions 1 and 16).
4. Your employer made an error. An employer that discovers an error in box 12 code TT must file Form W-2c and furnish it to the employee (question 11).

If the W-2 is for tax year 2025

For 2025 the rules are different. A 2025 Form W-2 has no code TT, because employers were not required to report qualified overtime compensation separately for 2025. For tax year 2025 only, IRS Notice 2025-69 (n-25-69.pdf) lets an employee determine the qualified amount from pay statements with a reasonable method described in the notice. This relief does not apply to tax years after 2025 (IRS FS-2026-13, question 20).

Request a corrected W-2c

1. Check box 12 of your 2026 Form W-2 for an entry with code TT. Add up the overtime premium on your pay stubs for the year, so you can state the amount you believe is missing.
2. Ask your employer or payroll department for a Form W-2c, Corrected Wage and Tax Statement, that reports the qualified amount in box 12 code TT. The IRS says the employee must request the Form W-2c from the employer. A written request gives you a record.
3. Keep copies of your pay stubs, your request, and any written response.
4. If the employer is unwilling or unable to furnish a Form W-2c, you may use only the amount actually reported in box 12 code TT. This holds even if you were paid more qualified overtime than reported.

A Form 4852, Substitute for Form W-2, is for missing or incorrect wage statements generally, but the IRS states it does not satisfy the section 225(a) requirement for this deduction because it is not furnished under section 6051(a)(19). Any qualified overtime amount reported on a Form 4852 cannot be used to determine the deduction. Source: IRS FS-2026-13, questions 22 and 23.

Forms: Form W-2c (fw2c.pdf) · Form 4852 (f4852.pdf) · About Form W-2c

Employer duty, penalties, and edge cases

If an employer discovers an error in box 12 code TT, the employer must file Form W-2c with the Social Security Administration and furnish Form W-2c to the employee as soon as possible. An employer that files or furnishes an incorrect Form W-2 may be subject to information reporting penalties under section 6721 or 6722.

If the employer overstated the amount in box 12 code TT, you may only consider the actual amount of qualified overtime compensation you were paid, not the overstated figure on the form.

To claim the deduction you must have a social security number that is valid for employment and issued by the SSA before the due date of your return, including extensions. If you are married, you and your spouse must file a joint return to claim the deduction. Each spouse who received qualified overtime compensation must have a social security number that is valid for employment.

Sources: IRS FS-2026-13, questions 11, 21, 24 and 25 and the 2025 Form 1040 instructions (Schedule 1-A, Part III).

Worked examples

Swipe the table sideways to see every column.

Each example assumes the amount was reported in box 12 code TT (or furnished on a corrected Form W-2c) and that the entered compensation is qualified. It does not estimate tax saved because that depends on the full return and marginal tax rates.

The $12,500 and $25,000 caps and the $150,000 and $300,000 income thresholds are in IRS FS-2026-13, question 2. The double-time row follows question 16. The $100 reduction for each complete $1,000 is on Schedule 1-A (2025 form), lines 19 and 20.

Before you use the result

1. Confirm the amount is on Form W-2, box 12, code TT or on a corrected Form W-2c. For tax years after 2025, an amount that is not reported there may not be used for the deduction.
2. Confirm the compensation is the FLSA-required premium and is included in income.
3. Complete Schedule 1-A Part I for the year of the return before applying the cap and MAGI threshold.
4. Check the official form and instructions for the year being filed.
5. Keep payroll records, pay stubs, and any employer statement used to document the correction.
6. State income tax rules are not covered on this page.

Sources: IRS FS-2026-13, question 20, IRS Schedule 1-A (2025 form) and the 2025 Form 1040 instructions (the Schedule 1-A instructions start on page 101).

How this page was checked

Each rule on this page was compared with IRS Fact Sheet FS-2026-13 (August 2026), with Notice 2025-69 for tax year 2025, and with Part III of IRS Schedule 1-A (2025 form). The examples table is recomputed from the calculator code each time the site is built, and the build stops if a row differs. The unit tests cover the $12,500 and $25,000 caps, the $150,000 and $300,000 thresholds, the $100 step, and the IRS double-time example in question 16 ($20 rate, 10 overtime hours, $100 qualified). Rules checked October 10, 2026. The methodology page explains how the site handles sources.