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W-2 Box 12 Code TT: What It Means for Your 2026 Taxes

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

Code TT in box 12 of your 2026 W-2 is your qualified overtime: the extra half of time-and-a-half. It’s the number you deduct, and you can’t deduct more than it shows.

Enter your code TT

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Form 1040, line 11. Include your overtime and tips.
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.

What code TT means

If code TT is wrong

Missing or too low

Ask your employer for a corrected W-2 (Form W-2c). If they won’t fix it, you can only use the amount shown. A substitute W-2 (Form 4852) doesn’t count.

Too high

Deduct only what you were really paid. IRS example: paid $5,000, reported $10,000. You can claim no more than $5,000.

Why it matters in 2026

For 2025, workers could work out the number themselves (Notice 2025-69). From 2026, code TT is the only figure the IRS accepts. Got more than one W-2? Add up the TT amounts. On a joint return, add your spouse’s too.

Use the full overtime calculator to estimate from your hours instead.

Code TT FAQ

What does code TT mean on a W-2?

Box 12 code TT is the total qualified overtime compensation your employer paid you during the year: only the premium above your regular rate that the FLSA requires, such as the “half” of time-and-a-half. It is new on the 2026 Form W-2.

Is the code TT amount left out of box 1 wages?

No. Overtime is still wages and stays in box 1, and Social Security and Medicare tax still apply. You use the TT amount to figure the separate deduction on Schedule 1-A, Part III.

Can I deduct more overtime than code TT shows?

Not for tax years after 2025. The IRS says you may not count any qualified overtime above what is reported in box 12 with code TT. If the amount is too low, ask your employer for a Form W-2c.

Can I use Form 4852 if my employer won’t correct code TT?

No. The IRS says Form 4852 doesn’t meet the reporting requirement, so overtime shown only on Form 4852 can’t be used for the deduction.

What if code TT is too high?

You may only use the qualified overtime you were actually paid. If TT is overstated, deduct the actual amount, not the reported one.

Why doesn’t my 2025 W-2 have code TT?

For 2025, employers didn’t have to report qualified overtime separately, and Notice 2025-69 let workers figure the amount themselves for that year. Code TT starts with the 2026 Form W-2.