Line Cook & Kitchen 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: Marco — at the scenario numbers pre-loaded below, the OBBBA deduction is $3,610, worth about $433 in federal income tax at a 12% marginal rate ($17 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
$3,610
✅ 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)
Back-of-house OT is unpaid-overtime-lawsuit territory — and where it is paid, it is now deductible. If your kitchen illegally shorts your OT, the deduction only exists once the premium hits a W-2, including back-pay from a settlement. Cooks who share in tip pools via the tip-credit rules have a separate question: tip-pool income may qualify for the tips deduction instead.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Marco works the line at $19/hour and closes five nights a week, logging about 380 overtime hours a year.
- • Deductible amount: $3,610
- • Federal income tax savings: $433 (at the 12% marginal rate)
- • Per biweekly paycheck: $17
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
Can a line cook claim both the overtime and tips deductions?
Yes, if you have both W-2 overtime premium and qualified tip income — they are separate Schedule 1-A lines with separate caps. Back-of-house workers in valid tip pools can claim the tips deduction on their pooled share, plus the overtime deduction on their kitchen OT.
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.