Border Patrol overtime supplemental Pay

Forum|Forum|2 months ago
April 3, 2026
1 reply
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Will the supplemental and differential pay be considered overtime?

JamesG1

Level 15

Not necessarily.

The Qualified Overtime Deduction is defined as the “half” portion of “time-and-a-half” compensation that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

As an example, if the employee’s regular rate of pay is $20 per hour and the employee worked one hour of overtime, the employee’s full overtime pay would be $30 ($20 x 1.5). The Qualified Overtime Deduction would be $10.

Even if your union contract negotiated overtime pay of $40 per hour, the Qualified Overtime Deduction would remain $10 because the deduction is defined by what is required by the Fair Labor Standards Act.

Other Qualified Overtime Deduction information:

Maximum annual deduction is $12,500 ($25,000 for joint filers).
Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
The deduction reduces federal income tax liability, it does not exempt overtime pay from Social Security and Medicare taxes. Employees will still owe these taxes on their overtime earnings.
Taxpayers filing as married filing separately are not eligible for the deduction.
The deduction is available for both itemizing and non-itemizing taxpayers.

See this TurboTax Help.

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