Schedule1ADesk / 2026 Tax & Payroll Guides / $45/Hour with 10 Overtime Hours/Week: 2026 No Tax on Overtime (W-2 Code TT) Calculator
$45/Hour with 10 Overtime Hours/Week: 2026 No Tax on Overtime (W-2 Code TT) Calculator
How much is the 2026 overtime tax deduction for $45/hr Hourly Worker (10 OT hrs/wk)?
At $45/hour working 10 FLSA overtime hours per week for 50 weeks, your gross 1.5x overtime pay is $33,750, and your qualified 0.5x half-time overtime premium (reported in 2026 Form W-2 Box 12, Code TT) is $11,250, saving roughly $2,475 in federal tax.
Under Public Law 119-21 (IRS Schedule 1-A, Part III), the 2026 "No Tax on Overtime" deduction applies strictly to the FLSA-required 0.5x half-time premium portion of time-and-a-half pay for hours worked over 40 in a workweek. For 2026, your employer must report this exact 0.5x amount in Form W-2, Box 12, Code TT.
Open Pre-Filled $45/hr (10 OT Hrs/Wk) Schedule 1-A PDF Worksheet
2026 Paystub-to-W-2 Box 12 Code TT Breakdown ($45/hr Hourly Worker (10 OT hrs/wk))
| Overtime Pay Component | Weekly Amount (10 OT Hrs) | Annual Amount (50 Weeks) | 2026 Tax Treatment |
|---|---|---|---|
| Regular Base Rate (1.0x Straight-Time Portion) | $450 ($45/hr x 10h) | $22,500 | Taxed as normal W-2 Box 1 wages (Excluded from Code TT) |
| FLSA Half-Time Premium (0.5x Multiplier) | $225 ($22.50/hr x 10h) | $11,250 | Reported in W-2 Box 12 Code TT · Deductible on Schedule 1-A |
| Total Time-and-a-Half Overtime Pay (1.5x) | $675 ($67.50/hr x 10h) | $33,750 | Subject to normal 7.65% FICA (Social Security & Medicare) |
| Allowed Schedule 1-A Part III Deduction | N/A | $11,250 (Single Cap $12,500 / MFJ $25,000) | Saves ~$2,475/yr in the 22% federal bracket |
Frequently Asked Questions
Why is my W-2 Box 12 Code TT only one-third of my total 1.5x overtime pay at $45/hour?
Because the federal FLSA overtime deduction only exempts the 0.5x half-time premium ($22.50/hr) above your regular $45/hr base wage, which equals exactly one-third of your $67.50/hr time-and-a-half pay.
What is the maximum 2026 Schedule 1-A overtime deduction cap?
The maximum deduction is $12,500 for Single and Head of Household filers, and $25,000 for Married Filing Jointly, phasing out above $150,000 ($300,000 MFJ) MAGI.