Utility Worker & Lineworker 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: Sam — at the scenario numbers pre-loaded below, the OBBBA deduction is $9,450, worth about $2,079 in federal income tax at a 22% marginal rate ($80 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
$9,450
✅ 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)
Storm-response weeks of 80-100 hours are the single biggest OT events in the trades, and the full premium counts. Watch your MAGI though: lineworker pay plus heavy OT can approach the $150,000 phase-out, where the deduction shrinks $100 for every $1,000 over. Diversified per-diem during deployments stays out of that math.
The full rules, caps and phase-outs for every deduction are in one table on the OBBBA rules page.
Worked Example
Sam works lines at $42/hour, and storm response plus planned outages deliver about 450 overtime hours in a typical year.
- • Deductible amount: $9,450
- • Federal income tax savings: $2,079 (at the 22% marginal rate)
- • Per biweekly paycheck: $80
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
Can heavy storm-response OT push me into the phase-out?
Yes. Overtime premium raises your MAGI, and above $150,000 (single) the deduction drops $100 per $1,000 of MAGI. If a monster storm year pushes you near the line, the calculator shows exactly how much survives the phase-out.
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.