HVAC Tech Overtime Tax Deduction Calculator
For service techs on no-AC emergencies and seasonal changeovers.
The short answer: At the numbers below, the deduction is $5,440, worth $653 at 12% ($25 per paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$5,440
✅ 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.
Heat Wave Economics
The first 95° week of summer puts every service tech on OT; winter deep-freeze does the same for heat calls.
- • Emergency service hours past 40/week at 1.5× → deductible premium
- • On-call rotations: worked hours at premium count
- • Commission on equipment sales → not OT premium
Worked Example
MFJ service tech, $32/hour, 340 OT hours.
- • Premium $16 × 340 → $5,440; $653 at 12%
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Frequently Asked Questions
Do HVAC technicians qualify for the OBBBA overtime deduction?
Yes — W-2 hourly techs qualify for the premium-half deduction on OT past 40/week, caps and phase-out apply.
Does equipment sales commission count?
No. Commission is not OT premium; only hourly premium dollars past 40 count.