Home Health Aide Overtime Tax Deduction Calculator
For HHAs and CNAs stacking visits, live-in weeks, and agency double shifts.
The short answer: At the scenario below, the OBBBA deduction is $2,975 — about $357 back at a 12% rate ($14 per biweekly paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$2,975
✅ 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.
Live-In and Double Shifts
Agency HHAs frequently cross 40 hours juggling multiple clients. Under FLSA companionship rules updates, home care workers are entitled to OT past 40 — when it's paid, it's deductible premium.
- • Hours past 40/week at 1.5× → deductible premium
- • Live-in arrangements paid per-day: only the OT premium portion beyond the 40-hour equivalence is deductible
- • Sleep-time exclusions reduce counted hours — use paid OT hours, not hours on shift
Worked Example
A single HHA at $17/hour logging 350 OT hours across double shifts.
- • Premium $8.50 × 350 → $2,975 deduction
- • At the 12% rate, $357 back — meaningful money at aide wages
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Frequently Asked Questions
Do home health aides qualify for the OBBBA overtime deduction?
Yes, when paid on W-2 with genuine time-and-a-half past 40 hours. The 2025–2028 deduction covers the premium half, capped at $12,500 single / $25,000 joint.
My agency pays straight time for everything. Can I still deduct?
No — if there is no premium portion (no 1.5×), there is nothing to deduct. Straight-time extra hours are regular wages. Agency OT violations are a wage-law issue, not a tax deduction.