Nurses and Truckers: Who Actually Gets the Overtime Deduction
The two professions with the most overtime in America, and the fine print that decides who benefits.
The overtime deduction covers the premium half of time and a half pay, up to $12,500 a year, $25,000 for couples filing jointly. But it only covers overtime that federal law, the FLSA, requires. That single word, requires, decides most of the edge cases in nursing and trucking.
Nurses: mostly yes, with two catches
Hourly staff nurses qualify. Your time and a half past 40 hours is FLSA overtime and the premium half is deductible. Twelve hour shifts have a wrinkle: some hospitals pay daily overtime after 8 or 12 hours because of state law or a union contract, and overtime that is only required by state law or contract, not by the FLSA, does not count for the federal deduction. California nurses hit this constantly, since daily overtime there is a state rule. Your weekly over 40 hours still counts either way.
Salaried nurse managers and nurse practitioners classified as exempt get nothing, because their extra hours are not FLSA overtime at all. And extra shift incentive pay or bonuses are not overtime premium, so they do not count either.
Truckers: the surprise exemption
Here is the one that shocks drivers. Most long haul truckers are covered by the motor carrier exemption, which means the FLSA does not require overtime pay for them at all. If your carrier pays you by the mile with no time and a half, there is no FLSA overtime premium and nothing to deduct. The deduction cannot apply to overtime that was never legally required.
Some driving jobs do qualify. Drivers of smaller vehicles under 10,001 pounds, many local delivery drivers, and warehouse or dock workers who get true time and a half past 40 hours can claim the premium half like anyone else. If your pay stub shows time and a half for hours past 40, you are likely in the qualifying group.
How to check your own situation
Look at a recent pay stub. If you see overtime paid at 1.5 times your rate for hours past 40 in a week, take the premium half of that pay and it is likely deductible. From 2026, employers report the exact qualified amount in box 12 of your W-2 under code TT. For 2025 you may need your own pay records.
See what it is worth
The free overtime deduction calculator takes your wage and weekly overtime hours and shows your deduction and your estimated tax savings in seconds. No signup, and nothing you enter leaves your browser.