Can I claim the deduction for No Tax on Overtime as an hourly UPS Feeder Driver?

[Kirkbus20]

I can't get a clear answer from anybody. So many feeder drivers are claiming the deduction, some aren't. Many are saying that their tax professionals are saying that they are able to take the deduction, some say we can't. Does anyone have a clear answer? I asked on the question form on Turbo Tax and the Ai response tells me that I can. TurboTax help section told me the following: Overtime for UPS Feeder drivers may qualify for the No Tax on Overtime deduction only if it meets the criteria for 'qualified overtime compensation.'" This means the overtime must be required under the Fair Labor Standards Act (FLSA), and the deductible portion is the 'overtime premium'-the half portion above regular pay. If the overtime pay is paid according to FLSA standards and reported correctly, it likely qualifies. However, state-mandated overtime or amounts above time-and-a-half pay required by FLSA do not qualify." Thank you for your input.

[DawnC]

You can deduct the ''half'' portion reported on your w-2.   Some states have higher standards for reporting overtime, but only the federal rules apply.   

Under the new federal "No Tax on Overtime" law (2025–2028), you can only deduct the overtime premium (the "half" in "time-and-a-half") for hours worked over 40 in a workweek that are specifically required by the federal Fair Labor Standards Act (FLSA), up to $12,500 annually ($25,000 for married filing jointly).

• Only FLSA-Required Overtime Qualifies: If your state requires overtime pay after 8 hours in a day (or the 7th consecutive day), but you have not exceeded 40 hours for the week, that daily overtime is not eligible for the federal deduction.
• Voluntary/State-Specific OT: Overtime paid in more circumstances than required by the FLSA (e.g., in California or via union contracts) does not qualify for this specific federal tax deduction.
• The "Premium" Portion: The deduction applies to the extra 0.5x rate (the "half") of the time-and-a-half pay, not the total pay.

[Kirkbus20]

Thank you very much for the response.

What I'm very confused about is if we're eligible under the FLSA. The rules are very confusing and nobody seems to be able to find a clear cut answer.

My husband's job is supposedly exempt from the deduction, however, he gets overtime after the 8 hours and works well over 40 hours per week. 

Some drivers are saying that their tax professionals are filing the deduction and some are saying that theirs aren't.

Thanks for any information. I appreciate it.

[Kirkbus20]

Adding on...I don't know why this is listed under the "after you file" category. I'll see if I can post it elsewhere.

[JohnB5677]

Yes, a W-2 employee that is a tractor trailer driver can claim the no-tax on overtime deduction.  A independent over-the-road driver can't.

You stated: 

"Overtime for UPS Feeder drivers (Tractor Trailer) may qualify for the No Tax on Overtime deduction only if it meets the criteria for 'qualified overtime compensation."

• This is correct. The driver is a W-2 employee that earns overtime over 40Hours required by the Fair Labor Standards Act 

"However, state-mandated overtime or amounts above time-and-a-half pay required by FLSA do not qualify."

• Non qualified overtime includes
  • State-mandated daily overtime,
  • Contractual premiums,
  • Bonuses, and
  • Pay for exempt employees.
• There also may be collective bargaining, contractual holidays, and overtime that are not covered.

[Edited 02/15/2025 |10:54 AM PST]