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Level 2
January 27, 2026
Solved

No tax on overtime

  • January 27, 2026
  • 1 reply
  • 7 views

I am an aircraft technician who works for a major airline, is my overtime pay for the tax year 2025 deductible?  I work under a CBA.

Thanks,

Mike 

Best answer by KrisD15

You are correct. 

An employee under the Railway Labor Act is not covered under the FLSA and therefore not eligible to use the No Tax On Overtime Additional Deduction. 

 

LINK 

1 reply

Level 13
January 27, 2026

Yes, based on the information your provided, your overtime pay may be deductible.  Note that only the "half" pay from time-and-a-half is deductible, and only overtime required by the Fair Labor Standards Act is deductible. So if your contract allows overtime that isn't required, such as on a holiday when that is part of a 40 hour week, that wouldn't be deductible.

 

There is also an income phaseout (this starts at $150,000 for single filers and $300,000 for married filing jointly).

 

Here is an article you may find helpful: No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025

PB18Author
Level 2
January 31, 2026

From my understanding since we are under the RLA it does not apply to airline employees. 

KrisD15
KrisD15Answer
Level 15
January 31, 2026

You are correct. 

An employee under the Railway Labor Act is not covered under the FLSA and therefore not eligible to use the No Tax On Overtime Additional Deduction. 

 

LINK 

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