No Tax on Overtime for Warehouse Workers (2026)

Tax year 2026 · Last updated · Maintained by the WattFlow team

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.

Overtime calculator for warehouse workers

Private: runs in your browser
Form 1040, line 11. Include your overtime and tips.
How to enter your overtime
Find the letters TT in box 12. Add up all your W-2s.
More options Tax year, itemizing, special cases
Leave blank if you take the standard deduction.

Estimate of federal income tax only. Not tax advice.

Example: warehouse worker

Planning estimate from pay and hours. Your 2026 deduction uses the code TT amount on your W-2.

What warehouse workers should know

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.