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]
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