Farm Worker Overtime Tax Deduction Calculator
For harvest crews and processing-plant workers on 60-hour weeks.
The short answer: At the scenario below, the deduction is $3,420 — $410 back at 12% ($16 per paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$3,420
✅ 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.
State OT Rules Are Expanding
California, Oregon, Washington, and more states now phase in farm OT past 40 (CA hits 40/week in 2027); federal rules still exempt some ag overtime.
- • Hours past 40/week paid at 1.5× under state law → deductible premium
- • H-2A workers on W-2 with OT → also covered
- • Piece-rate pay without premium → no deduction
Worked Example
Single processing-plant worker, $18/hour, 380 OT hours during pack season.
- • Premium $9 × 380 → $3,420; $410 back at the 12% rate
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Frequently Asked Questions
Do farm workers qualify for the OBBBA overtime deduction?
Yes, when paid on W-2 with genuine time-and-a-half past 40 hours — increasingly common under state law. Piece-rate and 1099 crew pay do not generate the deduction.
Does H-2A status change eligibility?
No. H-2A workers on W-2 payroll with OT premium qualify the same as any worker for this wage deduction.