Indiana Overtime Tax Deduction Calculator
Hourly workers in Indiana.
The short answer: The numbers below are a realistic Indiana scenario: a $2,750 deduction, about $330 in federal tax saved at the 12% bracket, or $13 per biweekly paycheck. Adjust the inputs to match your pay stub.
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$2,750
✅ 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.
Where Indiana Overtime Actually Comes From
Indiana is straight FLSA — manufacturing state, 40-hour weeks, predictable OT.
- • IN OT: 1.5× after 40 hours/week, no state additions
- • RV manufacturing (Elkhart), steel, and auto-supplier plants drive heavy OT cycles
- • Seasonal RV production swings OT totals year to year
Worked Example
A single Indiana RV-plant worker at $22/hour with 250 OT hours — the exact numbers are editable.
- • Premium portion: $22 ÷ 2 = $11.00/hour on OT hours
- • Deduction: $2,750 (watch the cap and MAGI phase-out as you raise the inputs)
- • Federal income tax savings: $330 at the 12% marginal rate
Keep Reading
Frequently Asked Questions
Does Indiana tax the OT deduction at the state level?
No — the OBBBA deduction is federal; Indiana taxes overtime as wages.
RV industry boom/bust cycles — how to run it?
Use each year's actual OT hours — boom years can approach the cap.
What if my employer pays double time instead of time-and-a-half?
The deduction covers the premium portion of pay treated as overtime beyond 40 hours — run the premium dollars your payroll actually reports as OT.