Diesel Mechanic Overtime Tax Deduction Calculator
Run your real overtime numbers below. The estimate applies the same Schedule 1-A math as your federal return — no tax software, no signup.
The short answer: Oscar — at the scenario numbers pre-loaded below, the OBBBA deduction is $5,800, worth about $1,276 in federal income tax at a 22% marginal rate ($49 per biweekly paycheck). Exact figures update live as you change the inputs.
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$5,800
✅ 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.
What Counts (and What Doesn't)
Fleet shops run night and weekend service windows, and those off-shift hours typically carry premium pay — pure deduction fodder. Tool allowances and shop supplies stipends are not wages and do not count. If you flip between base pay and flat-rate book hours, use whichever produces actual W-2 OT premium lines.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Oscar maintains a regional fleet at $29/hour, with breakdown emergencies and night slots generating roughly 400 OT hours a year.
- • Deductible amount: $5,800
- • Federal income tax savings: $1,276 (at the 22% marginal rate)
- • Per biweekly paycheck: $49
Every dollar of that comes off federal income tax while FICA still applies — the calculator above runs the same caps and phase-outs your return will.
Keep Reading
Frequently Asked Questions
Do night and weekend service windows generate deductible OT?
When they are paid as overtime premium, yes. Scheduled night shifts at a differential are regular wages, but weekend service hours beyond 40/week paid at time-and-a-half are overtime premium — the deductible kind.
Do I need to itemize deductions to claim the overtime deduction?
No. The overtime premium deduction is an above-the-line adjustment on Schedule 1-A — you can take the standard deduction and still claim it in full.