Will Quickbooks be filling in the new overtime wage deduction amount on the W-2's?

That’s a great question, @Tishie18.
 

I'll provide more details below that explains whether QuickBooks will fill in the new overtime wage deduction amount on W-2s.
 

QuickBooks will not fill in a new overtime wage deduction amount on W-2s for 2025 because the IRS hasn’t added a W-2 field for it. If the IRS introduces new reporting requirements, QuickBooks will update automatically.
 

For the 2025 tax year, federal withholding tables and tax forms remain unchanged per the IRS. QuickBooks Payroll will continue to calculate taxes on eligible overtime using current rules.
 

As the IRS finalizes guidance on reporting qualified overtime, QuickBooks will monitor updates and automatically manage any new W-2 reporting requirements. You'll receive email notifications to keep you informed of changes or actions needed.
 

For further information, check out this QuickBooks blog: Details on the One Big Beautiful Bill Act and how it affects payroll.

Feel free to Reply if you have further questions or concerns. We're here to help.

Hi Arnold,

    Ok, thank you!!  I did find an article from the IRS and it states to put the amount in box 14 on the W-2, but not mandatory this year.  Thank you!!

Hi there, @Tishie18.

We're glad to hear that the information provided by my colleague regarding the new overtime wage deduction amount on the W-2 was helpful to you.

If you have any further inquiries or require assistance with anything else, please don't hesitate to ask. We're always available in the QuickBooks Community. Have a great day!

If we add the overtime to Box 14 do we deduct it from box 1 & 16

Good morning, SusanKeen.

That is a great question, and I'm glad you reached out for clarification before processing your W-2s.

Overtime should not be deducted from Box 1 & Box 16 when added to Box 14, as Box 14 is an informational field. It is used to report additional details to employees, such as union dues, educational assistance, or a breakdown of wage types like overtime.

While Box 1 (Wages, tips, other compensation) and Box 16 (State wages) represent the total taxable wages paid to an employee during the year, which include both regular pay and overtime pay combined.

You can think of Box 14 as a "memo" field. If overtime information is included there, it simply provides further detail about a portion of wages that are already included in Boxes 1 and 16. The overtime wages remain part of the total taxable compensation.

If you have additional questions about preparing W-2s, please don't hesitate to follow up.

I'm confused! According to the instructions from IRS that we are to put overtime in Box 12 with code TT, but quickbooks will not allow me to use that code! Do I put it in box 14 and use code TT in descr?

Hi there, Deep31.

I recognize the importance of maintaining precise payroll records with accurate overtime calculations, which facilitates correct reporting on W-2 forms in QuickBooks Online (QBO).

While the Internal Revenue Service (IRS) has officially designated Box 12 with code TT for qualified overtime, QuickBooks hasn’t yet updated its menu to include this new code for the 2025 tax year filings. The program will release an update this year, and you’ll be able to select the specific Qualified Overtime code for the 2026 tax year filings.

Regarding your question, yes, you can use Box 14 and label it TT to ensure correct information on W-2 forms.

To learn more about the Qualified Overtime tracking in QuickBooks, check out this resource: Impact of the No Tax on Overtime provision to QuickBooks Payroll.

If you have more questions, don’t hesitate to comment below.