Respiratory Therapist Overtime Tax Deduction Calculator
For RTs covering ICUs, doing on-call vent checks, and picking up incentive shifts. See your OBBBA deduction.
The short answer: At the numbers pre-loaded below, the OBBBA deduction is $4,290 — about $944 back at a 22% rate ($36 per biweekly paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$4,290
✅ 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 for RTs
RTs are hourly W-2 employees at most hospitals, which makes the qualification simple: hours past 40 in a workweek paid at 1.5× are qualified OT.
- • Incentive/extra shifts that push the week past 40 → OT portion deductible
- • On-call hours actually worked past 40 → deductible if paid at premium rate
- • Three 12s (36 hrs) baseline → not OT; the 4th shift is where the deduction starts
Worked Example
A single RT at $33/hour covering 260 OT hours of ICU surges through the year.
- • Premium portion: $16.50/hour × 260 → deduction $4,290
- • Savings: $944 at the 22% marginal rate
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Frequently Asked Questions
Do respiratory therapists qualify for the OBBBA overtime deduction?
Yes. RTs on hourly W-2 hospital payroll qualify for the premium half of OT hours beyond 40/week, capped at $12,500 single / $25,000 MFJ.
Does on-call stipend count toward the deduction?
The on-call stipend itself is not OT premium. Only hours you actually worked beyond 40/week at time-and-a-half generate deductible premium.