Paramedic Overtime Tax Deduction Calculator
Built for paramedics and EMTs on 24s, 48s, and mandatory holdovers. See how much of your OT premium is deductible under the OBBBA.
The short answer: Dana — at the scenario numbers pre-loaded below, the OBBBA deduction is $5,880, worth about $706 in federal income tax at a 12% marginal rate ($27 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
$5,880
✅ 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.
24-Hour Shifts and the 40-Hour Rule
Most EMS systems run 24-on/48-off or 48/96 schedules. Roughly 56 hours a week average means half your weeks are already over 40 hours before a single holdover — every hour past 40 paid at 1.5× is qualified overtime for the deduction.
- • Holdovers past shift change → OT if paid at 1.5× (most union EMS contracts pay 2× after 4 holdover hours — only the 1.5× premium portion is the deduction base, not the extra 0.5×)
- • Mandatory coverage and callback → OT beyond 40/week
- • Shift trades that push you past 40 in a week → OT on the excess
Worked Example
Dana is a single paramedic at a county EMS service making $28/hour, held over roughly 420 OT hours in the year.
- • Premium portion: $28 ÷ 2 = $14.00/hour
- • Deduction: $5,880 (under the $12,500 single cap at this MAGI)
- • Federal income tax savings: $706 at the 12% marginal rate
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Frequently Asked Questions
Do paramedics qualify for the no-tax-on-overtime deduction?
Yes — paramedics and EMTs paid hourly on W-2 through a county, hospital, or private EMS service are exactly who the deduction covers. Hours beyond 40 per week paid at time-and-a-half qualify, up to $12,500 single / $25,000 joint for 2025–2028.
My service pays 2× for holdovers — is all of it deductible?
No. The deduction covers the 0.5× premium portion above your regular rate. If a holdover hour pays 2× ($56 at $28 base), the deductible premium is the amount above straight time treated as OT premium — run the actual premium dollars your employer reports.
Does shift differential count?
Night and weekend differentials are not part of the premium-half deduction. If your OT rate is computed on a blended rate that includes differentials, use the blended regular rate your payroll reports.