No tax on overtime

[PB18]

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 

[MindyB]

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

[PB18]

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

[KrisD15 · Accepted solution]

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