Longshoreman Overtime Tax Deduction Calculator
For dock workers on vessel days, hatch shifts, and weekend gangs.
The short answer: At the numbers below, the deduction is $9,200, worth $1,104 at 12% ($42 per paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$9,200
✅ 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.
Vessel Days Run Long
Cargo work pays OT for hours beyond 8/day and 40/week plus weekend differentials — much of a busy year's pay is premium.
- • OT hours past 40/week (or daily OT converted to premium dollars) → deductible
- • Weekend/holiday premium portions → count toward the premium base
- • Hall dispatch at straight time → not premium
Worked Example
MFJ longshoreman, $40/hour, 460 OT hours.
- • Premium $20 × 460 → $9,200; the MFJ phase-out may trim it — calculator handles it
- • Savings $1,104 at 12%
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Frequently Asked Questions
Do longshoremen qualify for the OBBBA overtime deduction?
Yes — W-2 registered dock workers qualify. The premium half of OT beyond 40/week is deductible, with caps and the MAGI phase-out.
Container royalty payments — are they part of this?
No. Royalty fund payments are not overtime wages; only employer-reported OT premium dollars count.