Miner 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: Cole — at the scenario numbers pre-loaded below, the OBBBA deduction is $7,800, worth about $1,716 in federal income tax at a 22% marginal rate ($66 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
$7,800
✅ 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)
Mines schedule OT as a feature — 48-56 hour weeks are the baseline in many operations, and every premium hour beyond the FLSA threshold is deductible. Shift differentials for underground or hazard duty raise your regular rate, which raises the deductible premium on each OT hour. Watch the cap: 520 hours at $30 means the $12,500 single cap binds.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Cole works underground at $30/hour on extended shift patterns that produce roughly 520 overtime hours a year.
- • Deductible amount: $7,800
- • Federal income tax savings: $1,716 (at the 22% marginal rate)
- • Per biweekly paycheck: $66
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
Does the $12,500 cap apply before or after the phase-out?
Before. The calculation orders the steps exactly like Schedule 1-A: premium hours first, then the cap ($12,500 single / $25,000 MFJ), then the MAGI phase-out. The calculator runs all three steps in order.
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.