Refinery Worker Overtime Tax Deduction Calculator
For unit operators, exchangers crews, and inspectors living in turnaround season.
The short answer: At the numbers below, the OBBBA deduction is $9,500 — about $1,140 back at 12% ($44 per biweekly paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$9,500
✅ 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.
Heavy OT, Heavy Deduction
Refinery turnarounds can push annual OT past 500 hours. At $38 base, that's over $9,000 of premium — close to the single cap, comfortably under the joint cap.
- • Shutdown/turnaround OT past 40/week → premium deductible
- • Outage call-ins and shift extensions → same rule
- • Watch the MAGI phase-out above $150,000 MFJ — heavy OT years can phase you out
Worked Example
MFJ operator, $38/hour, 500 OT hours.
- • Premium $19 × 500 → $9,500; savings $1,140 at 12%
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Frequently Asked Questions
Can a big turnaround year push me past the cap?
Yes — 500 hours at $38 base gives $9,500 premium (under $12,500 single). Over ~658 hours you cap out; the deduction stops growing past $12,500/$25,000.
Does per-diem reduce my deduction?
No. Per-diem is excluded from wages; only the OT premium dollars count toward the deduction.