No Tax on Overtime for Warehouse Workers (2026)
Peak-season overtime at warehouses and fulfillment centers can be deducted. You can deduct the overtime premium (the “half” of time-and-a-half) up to $12,500, or $25,000 if married filing jointly. For 2026, use the code TT amount on your W-2.
- Cap $12,500 · joint $25,000
- W-2 box 12 code TT
Overtime calculator for warehouse workers
Private: runs in your browserEstimate of federal income tax only. Not tax advice.
Example: warehouse worker
- Fulfillment associate, $21/hour, 10 overtime hours a week for 20 weeks, single, $52,000 incomePremium: 0.5 × $21 × 200 hours = $2,100.Deduct $2,100 · save about $252 in federal tax
Planning estimate from pay and hours. Your 2026 deduction uses the code TT amount on your W-2.
What warehouse workers should know
- Hourly warehouse jobs are usually FLSA overtime-eligible.
- Mandatory extra time (MET) counts once your week goes over 40 hours.
- Bonuses that raise your regular rate also raise the premium. Your employer includes that in code TT.
- Only overtime the federal FLSA requires counts. Extra pay from state law or a contract alone doesn’t.
Warehouse Workers: FAQ
Do warehouse workers qualify?
Usually yes. Hourly warehouse workers are generally FLSA overtime-eligible.
Does peak-season double time count fully?
No. Only the half-time premium counts, even if you were paid double.
I worked through a staffing agency. Who reports it?
Whoever issues your W-2 reports code TT.
How much overtime can warehouse workers deduct?
Up to $12,500 of qualified overtime, or $25,000 on a joint return, for 2025 through 2028. It shrinks above $150,000 of income ($300,000 joint).
Does this lower Social Security or Medicare?
No. It only lowers federal income tax. State tax depends on your state.
Related tools and guides
- Factory and Manufacturing WorkersHourly overtime premium, code TT.
- Retail WorkersSpecial FLSA rules apply. See what counts.
- Truck DriversSpecial FLSA rules apply. See what counts.
- No tax on overtime calculatorW-2 code TT or an hours estimate, cap, phase-out and tax saved.
- W-2 box 12 code TTWhat code TT means, and what to do if it is missing or wrong.
- Double time and state overtimeDouble time, daily overtime, contracts: what counts.
- No tax on overtime by jobNurses, police, firefighters, drivers and more.