How double time splits
The calculator opens with 300 overtime hours at a regular rate of $30, paid at double time: $18,000 of overtime pay. It splits into three parts:
- $9,000 of regular pay for those hours, the “time”. Taxed as usual.
- $4,500, the “half” that time and a half requires. This is qualified overtime compensation, the amount you can deduct.
- $4,500 of extra premium that takes time and a half up to double time. More than the FLSA requires, so it isn’t deductible.
Switch the overtime rate to time and a half and the qualified amount stays $4,500: the deductible part depends on your hours and regular rate, not on how generous the multiple is.
The table below: what each multiple gives
The table under this text works it through for $1,000 of regular pay for overtime hours, so you can scale it to your own figures. Whatever you’re paid, the qualified half is the same $500.
Where double time comes from
Employers pay double time for many reasons: a union contract, company policy, a holiday, or a state rule. The IRS lists these as premium pay above what section 7 of the FLSA requires, and none of that extra counts. What decides whether an hour is an overtime hour at all is the FLSA: usually hours over 40 in a workweek, for a covered employee who isn’t exempt. A double-time Sunday in a 36-hour week doesn’t give you any qualified overtime.
Reporting it
For 2026 your W-2 shows the qualified amount in box 12, code TT, already reduced to the FLSA half; use The premium option and enter it. For 2025, use your employer’s statement if it separates the FLSA premium, or the method above, and keep the pay stubs you used.
$1,000 of regular pay for overtime hours, by overtime rate
| Overtime rate | Total overtime pay | Regular pay (taxed) | Qualified half (deductible) | Premium above 1.5× (not deductible) |
|---|---|---|---|---|
| 1.5× | $1,500 | $1,000 | $500 | $0 |
| 2× | $2,000 | $1,000 | $500 | $500 |
| 2.5× | $2,500 | $1,000 | $500 | $1,000 |
| 3× | $3,000 | $1,000 | $500 | $1,500 |