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February 12, 2025
Question

How do I enter my overtime hours that are exempt from Alabama state income tax?

  • February 12, 2025
  • 1 reply
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    1 reply

    DawnC
    Employee
    February 12, 2025

    You don't need to make any special entries; just enter your W-2.   Your W-2 already reflects the change.  

     

    For the tax year beginning on or after January 1, 2024, overtime pay received by a full-time hourly wage paid employee for hours worked above 40 in any given week are excluded from gross income and therefore exempt from Alabama state income tax.

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