Electrician 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: Aisha — at the scenario numbers pre-loaded below, the OBBBA deduction is $6,460, worth about $1,421 in federal income tax at a 22% marginal rate ($55 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
$6,460
✅ 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)
Union double-time on Sundays and holidays is the richest premium in the trades, and all of it counts — the deduction takes the premium portion above your regular rate whether it is 0.5x, 1.0x or 2.0x. Journeyman scale-up raises and a raise mid-year both lift your regular rate, so use a weighted average when entering your hourly rate.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Aisha is an IBEW inside wireman at $34/hour taking shutdown and callout work, totaling around 380 OT hours for the year.
- • Deductible amount: $6,460
- • Federal income tax savings: $1,421 (at the 22% marginal rate)
- • Per biweekly paycheck: $55
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
Does double-time on Sundays count more than time-and-a-half?
The deductible amount is the premium above your regular rate, so double-time produces twice the deductible premium of time-and-a-half for the same hours. Enter your annual premium accurately by using your total OT hours and regular rate — the engine applies the 0.5x premium floor, so for double-time hours enter them and adjust the rate guidance on the rules page.
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.