Carpenter Overtime Tax Deduction Calculator
For finish and rough carpenters on schedule-crash weeks.
The short answer: At the numbers below, the deduction is $4,500 — $540 back at 12% ($21 per paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$4,500
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Crash Schedule Premiums
Topping-out dates and inspection deadlines create 6-day carpenter weeks; the premium past 40 is deductible.
- • Job hours past 40/week at 1.5× → deductible
- • Travel between sites at regular rate → not premium
- • Per-diem hotel crews: per-diem excluded
Worked Example
MFJ carpenter, $30/hour, 300 OT hours.
- • Premium $15 × 300 → $4,500; $540 at 12%
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Frequently Asked Questions
Do carpenters qualify for the OBBBA overtime deduction?
Yes — W-2 hourly carpenters qualify. Independent contractor carpenters (1099) do not; the deduction is W-2 only.
What about union hours with fringe contributions?
Fringe paid to funds reduces W-2 wages. Base the deduction on your W-2 OT premium dollars.