Travel Nurse Overtime Tax Deduction Calculator
Run your real overtime numbers below. The estimate applies the same Schedule 1-A math as your federal return — no tax software, no signup.
The short answer: Erin — at the scenario numbers pre-loaded below, the OBBBA deduction is $6,750, worth about $1,485 in federal income tax at a 22% marginal rate ($57 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
$6,750
✅ 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.
What Counts (and What Doesn't)
Only your taxable hourly generates deductible premium — the tax-free stipends are not wages and never touch this calculation. That also means stipends keep your MAGI lower, which protects you from the $150,000 phase-out. Contract cancellation and completion bonuses paid as wages count toward MAGI even when they are not OT premium.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Erin takes 13-week contracts at $45/hour taxable base with housing stipends, picking up about 300 hours of OT a year.
- • Deductible amount: $6,750
- • Federal income tax savings: $1,485 (at the 22% marginal rate)
- • Per biweekly paycheck: $57
Every dollar of that comes off federal income tax while FICA still applies — the calculator above runs the same caps and phase-outs your return will.
Keep Reading
Frequently Asked Questions
Do my tax-free stipends affect the overtime deduction?
Stipends are excluded from wages under an accountable plan, so they add nothing to MAGI (good for the phase-out) and generate no deductible premium. Only overtime premium on your taxable hourly rate counts for the deduction.
Do I need to itemize deductions to claim the overtime deduction?
No. The overtime premium deduction is an above-the-line adjustment on Schedule 1-A — you can take the standard deduction and still claim it in full.