2025 W2 Qualified OT

Hi there, JMKenroy123.

I understand the need to add the Qualified OT for W2 2025 form. QuickBooks doesn't add this in 2025, but it will reflect for the W2 form in 2026. The new payroll item was designed to be used for 2026 paychecks.

However, you can still add the Qualified OT for the 2025 year-to-date to update the payroll reports, and you will be able to use it when filing your W-2 2025 outside.

When filing outside, you can look for a tax advisor so you will be guided accordingly. You can then pull up the Payroll Summary report for reference.

You can refer to this article for more information on how to create a payroll summary in QuickBooks Desktop: Create a payroll summary report.

Feel free to reply here anytime you need assistance.

Hi, @JMKenroy213 

Just checking in to see if the solution we shared worked for you.

Please let us know if everything is now working smoothly or if you're still experiencing any challenges.

We'll be glad to assist further if needed.

There seems to be confusion about what amount to report in Box 14 of 2025 W2s for Qualified OT. Do we report the TOTAL amount of OT or just the HALF time in Box 14.

Hello there, CmeGo! Thanks for reaching out with your question.

When reporting in Box 14 of the 2025 W-2 for Qualified Overtime (OT), you'll only need to include the half-time premium portion or the amount that exceeds the regular rate of pay in Box 14.

The IRS defines Qualified Overtime Compensation as the pay that goes beyond the regular rate, generally the $0.5 portion of time-and-a half pay. Reporting the total Overtime (OT) amount could lead to an incorrect deduction for the employee.

You'll also want to visit this page for further details: Impact of the No Tax on Overtime provision to QuickBooks Payroll.

Feel free to reply to this post if you need further details.