What box on the W-2 reports overtime pay and how should it be filled out?

1. What the law requires now — a phased rollout and relief for 2025

The One, Big, Beautiful Bill Act created a temporary deduction for qualified overtime pay effective 2025–2028 and requires employers to file information returns and furnish statements showing the total qualified overtime compensation; but Treasury and the IRS provided transition relief for tax year 2025 and said they generally will not impose penalties on employers who do not separately report qualified overtime on 2025 W‑2s or other information returns ^{[2] [1]}.

2. Where overtime will be reported eventually — Box 12 with code “TT” (future change)

For calendar year 2026 and beyond the IRS’s draft Form W‑2 and guidance show employers will report the amount of qualified overtime compensation in Box 12 using code “TT,” reflecting the agency’s plan to add a formal, machine‑readable field for the deduction ^{[6] [5]}.

3. What employers are being told to do in 2025 — voluntary options including Box 14

Because 2025 forms were not changed, the IRS encouraged employers to provide employees the qualified overtime amount through an online portal, a separate written statement, or by using Box 14 of the W‑2 as one practical (voluntary) option for furnishing the information to workers ^{[1] [7] [8]}.

4. Payroll vendors and practitioners: mixed advice and caution

Payroll software vendors and tax advisers describe two realities: some systems offer a Box 14 label for “Qualified OT (Info only)” to help employers furnish the number, while many providers and practitioners warned against populating Box 14 on the 2025 W‑2 because calculating the correct deductible amount can be complex and employers could create confusion if those numbers are wrong despite penalty relief ^{[3] [4] [6]}.

5. How employees should expect to see the figure in 2025

Employees may receive the qualified overtime amount in several forms in 2025 — a separate employer statement, an online payroll portal summary, or voluntarily in Box 14 of their W‑2. But many workers will not see a separate W‑2 line in 2025 and will need to use pay stubs and “reasonable methods” spelled out by the IRS to compute the deductible overtime on their 2025 returns ^{[1] [8] [9]}.

6. Practical mechanics — what Box 14 is and why it’s being used

Box 14 is an open‑text, informational field on the W‑2 where employers customarily report miscellaneous items not captured elsewhere (e.g., union dues, employer‑paid tuition). IRS guidance and payroll vendors say Box 14 can be used in 2025 to furnish qualified overtime as an employee‑facing convenience because the formal Box 12/TT field won’t be required until 2026 ^{[3] [1] [5]}.

7. Risks, ambiguity and divergent viewpoints

Some tax professionals urge employers to avoid putting any number in Box 14 for 2025 to prevent misreporting and employee confusion, citing calculation difficulties and the temporary nature of the transition relief; other advisors and vendors recommend voluntary reporting (Box 14 or separate statements) to help employees claim the deduction if they are eligible — both positions are reflected in current reporting ^{[4] [6] [3]}.

8. What workers should do now to prepare

Workers should preserve pay stubs and payroll records, ask employers whether they will furnish a separate overtime accounting (via portal, statement, or Box 14), and follow the IRS reasonable‑methods guidance if no employer statement appears. If employers voluntarily include a Box 14 figure in 2025, treat it as informational and retain supporting documentation for your tax return ^{[8] [9] [10]}.

Limitations and sourcing note: this summary relies on IRS releases, payroll vendor guidance and reporting from tax professionals assembled in the cited materials. The sources above do not state that Box 14 is mandatory for 2025; they show it as an encouraged, voluntary option for furnishing information while Box 12/TT is the planned, formal field starting in 2026 ^{[1] [5]}.