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New for 2026. Code TT appears for the first time on the W-2 you receive in January 2027, after the One Big Beautiful Bill Act changed employer reporting. If you have filed taxes for years and have never seen it, that is why.
Quick answer

Box 12 Code TT is qualified overtime compensation.

What Code TT means

The overtime premium you earned under the Fair Labor Standards Act. It is the extra half of time and a half, not your whole overtime paycheck.

Does Code TT affect my taxes?

Here is the part people get wrong: this money is already included in your box 1 wages and it is not removed from them. Code TT simply flags how much of your pay was qualifying overtime, so the no tax on overtime deduction can be calculated on your return.

What to do about it

Compare it against your pay stubs. Because it drives a deduction, an error here costs you money, so raise it with payroll before filing rather than after.

Where to find Code TT on your W-2

Look at box 12, in the middle-right of the form. It has up to four lines, labelled 12a, 12b, 12c and 12d. Those letters are only line labels. The code you want is the small letter or pair of letters printed next to the amount, and it will read TT. If you have more than four entries, your employer issues a second W-2 to carry the rest.

Not the code you were looking for? The full box 12 code list covers every letter, and the W-2 box decoder explains every box on the form.

Frequently asked questions

Qualified overtime compensation. The overtime premium you earned under the Fair Labor Standards Act. It is the extra half of time and a half, not your whole overtime paycheck.
Here is the part people get wrong: this money is already included in your box 1 wages and it is not removed from them. Code TT simply flags how much of your pay was qualifying overtime, so the no tax on overtime deduction can be calculated on your return.
Compare it against your pay stubs. Because it drives a deduction, an error here costs you money, so raise it with payroll before filing rather than after.
Because it is new. Code TT first appears on the 2026 Form W-2, the one you receive in January 2027. It was added after the One Big Beautiful Bill Act changed what employers must report.
Box 12 sits in the middle-right of the form, with up to four lines labelled 12a through 12d. Each line has a small letter code and an amount. The letters a through d are just line labels, not codes.