In 2025, I maxed out the 401k contribution (over 50 yrs old) so the federal wages on W-2 was only $35k. State wages is $67k. I calculated that O/T was about $6k of the $67k I earned in 2025 (only the .5 portion, not 1.5).

    Won't it look wierd when I'm entering $35k for federal wages but O/T of $6k? Should I take a pro-rated share instead (i.e $35/$67 x $6k)? Not interested in getting flagged for an audit.

    Overtime amount is a large portion of W-2 wages for Federal due to 401k contribution
    byu/Dismal-Link-7331 intax



    Posted by Dismal-Link-7331

    5 Comments

    1. >Won’t it look wierd when I’m entering $35k for federal wages but O/T of $6k?

      Why would it?

      The IRS can also see your 401(k) contribution amount and FICA wages on Form W-2 if for whatever reason this looked strange to start with.

    2. Wonderful-TxFin on

      No. It’s correct – and IRS computers will recognize it too. PA, right? Aren’t they the only state that taxes deferred comp?

    3. You’re not entering 35k of federal income. You’re filling out the fields from your w2, which will match what your employer sends in, and as long as they match and are truthful there’s no issue. Not sure why you would think you’d get audited for this.

      If you get the standard 1.5x FLSA overtime, and you have the paperwork to back up your math of 6k, just enter the truth and get your refund.

    4. UncomfortableSlushie on

      You’re fine. I work a second job part time and have the majority of my paycheck going to a 401k there, it’s never been flagged

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