Transit Mechanic Overtime Tax Deduction Calculator
For bus and rail fleet mechanics keeping service rolling.
The short answer: At the numbers below, the deduction is $5,100 — $612 back at 12% ($24 per paycheck).
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$5,100
✅ 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.
Fleet Shortages Drive OT
Agencies short on mechanics run heavy OT weeks to keep fleet counts up.
- • Shop hours past 40/week at 1.5× → deductible premium
- • Night and weekend shifts past 40 → same
- • Tool allowance → not wages, not premium
Worked Example
MFJ transit mechanic, $34/hour, 300 OT hours.
- • Premium $17 × 300 → $5,100; $612 at 12%
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Frequently Asked Questions
Do transit mechanics qualify for the OBBBA overtime deduction?
Yes — W-2 agency mechanics qualify for the premium-half deduction on OT beyond 40/week.
I also drive a bus part-time. Combine OT?
Same employer: one W-2, OT sums naturally. Two employers: each W-2's OT counts, one shared cap.