You Make the Call - Sept. 3, 2026

Question: Jordan received $8,000 of qualified overtime compensation in 2026, but Jordan’s employer reported only $5,000 in Box 12, Code TT, of Form W-2, Wage and Tax Statement. What must Jordan do to include the additional $3,000 when determining the qualified overtime compensation deduction? 

Answer: Jordan must ask the employer to correct Form W-2 to report the full $8,000 in Box 12, Code TT. If the original Form W-2 was already filed with the Social Security Administration (SSA), the employer must issue Form W-2c, Corrected Wage and Tax Statement. Once Jordan receives the Form W-2c, he may use the $8,000 to determine the qualified overtime deduction on Schedule 1-A (Form 1040), Additional Deductions. 

Section 225(a) allows a deduction only for qualified overtime compensation received during the taxable year and included on a statement furnished to the individual under §6051(a)(19). For employees in 2026, qualified overtime compensation is reported in Box 12, Code TT, of Form W-2. If the employer is unwilling or unable to provide Form W-2c, Jordan can use only the $5,000 reported on the original Form W-2. Jordan cannot include the omitted $3,000 when determining the deduction, even if pay statements show the employer paid the additional qualified overtime compensation.