Healthcare Tech 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: Priya — at the scenario numbers pre-loaded below, the OBBBA deduction is $6,270, worth about $1,379 in federal income tax at a 22% marginal rate ($53 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
$6,270
✅ 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)
Call-back pay at premium rates is the hidden goldmine for techs: hours called in outside schedule almost always carry OT premium, and every premium dollar is deductible. Hospitals that pay call-back at time-and-a-half or double-time generate more deduction per hour than routine late-shift extensions at straight time.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Priya runs CT scans at $33/hour and covers call nights and weekend shifts that total about 380 OT hours annually.
- • Deductible amount: $6,270
- • Federal income tax savings: $1,379 (at the 22% marginal rate)
- • Per biweekly paycheck: $53
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
Is call-back pay at premium rates deductible?
Yes. Call-back hours paid at time-and-a-half or double-time carry overtime premium, and that premium is exactly what the OBBBA deduction covers. Routine shift extensions at straight time do not — the premium portion is the deductible part.
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.