OBBBA Calc

W-2 Code TT Reconciliation

From 2026, the overtime deduction can only be based on the amount your employer reports in Box 12, code TT. Enter that figure and the qualified premium you were actually paid, and this tool tells you what you can claim and what to do when the two do not match.

What you can claim

Claimable qualified overtime-

    Then run the claimable amount through the overtime calculator for the cap and phase-out.

    The reconciliation rules

    IRS FS-2026-13 (Q20 to Q23, PDF) is exact on this. If code TT is missing or too low, the extra amount cannot be claimed unless your employer issues a corrected Form W-2c; if they will not, only the reported amount counts. If code TT is too high, claim only the premium actually paid. A substitute Form 4852 never satisfies the rule. Tax year 2025 was different: Notice 2025-69 relief let employees work the amount out from pay records or paystubs. After you reconcile, the claimable amount still goes through the overtime calculator's cap and phase-out.

    Worked examples

    Clean match

    Code TT $5,000, premium paid $5,000, 2026.

    Claim $5,000 as the Part III starting amount

    Understated W-2

    Code TT $5,000, premium paid $10,000, no W-2c.

    Claim $5,000 now; the other $5,000 needs a W-2c

    Missing code TT

    Code TT blank, premium paid $8,000, 2026.

    Claim $0 until a W-2c reports it (in 2025, the paystub method would have allowed $8,000)

    Frequently asked questions

    My employer refuses to issue a W-2c. Can I use my paystubs instead?
    Not for 2026 onwards. The IRS says the unreported amount cannot be claimed without the corrected form, and Form 4852 does not work as a substitute. The paystub route only applied to the 2025 transition year.
    Code TT is more than I was paid. Should I claim the bigger number?
    No. Claim the qualified premium actually paid. An overstated code TT does not create a bigger deduction.
    Who else sees code TT errors?
    Employers must correct wrong W-2s with Form W-2c as soon as possible, and incorrect forms can draw information reporting penalties under sections 6721 and 6722.

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    Disclaimer: Estimate only. US federal deductions, tax years 2025 to 2028. This calculator is not tax advice.

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