The overtime deduction only covers overtime the federal Fair Labor Standards Act (FLSA) requires. Many truck drivers fall under the Motor Carrier Act exemption, which means the FLSA doesn't require their employer to pay overtime at all. Overtime they receive anyway is voluntary or contractual, so it isn't qualified.
| Driver | FLSA overtime required? | Deduction |
|---|---|---|
| Interstate CDL driver for a motor carrier (vehicles over 10,000 lbs) | No (Motor Carrier Act exemption) | Generally not eligible |
| Driver of vehicles 10,000 lbs or less (small vehicle exception) | Yes | Eligible for the premium |
| Purely local, intrastate driver not subject to DOT jurisdiction | Usually yes | Eligible for the premium |
| Warehouse or yard worker who doesn't drive | Yes | Eligible |
| Owner-operator (independent contractor) | Not an employee | Not eligible |
How to check
- Look at your pay stub: if you're paid time-and-a-half over 40 hours and your employer tracks “FLSA overtime”, you likely qualify.
- For tax year 2026, the deciding number is W-2 box 12, code TT. If it's blank, your employer treats your overtime as non-qualified.
- Mixed weeks matter: the small vehicle exception applies week by week.
Example
A local delivery driver in a box truck under 10,000 lbs, married filing jointly with $84,000 of income, has $5,200 of FLSA overtime premium. The deduction saves about $624 of federal income tax.
Common questions
Do truck drivers qualify for no tax on overtime?
Many don't, because the Motor Carrier Act exemption means the FLSA doesn't require their overtime. Local drivers and drivers of vehicles 10,000 lbs or less often do.
What if my employer pays overtime anyway?
If the FLSA doesn't require it, it isn't qualified overtime, even if you're paid time-and-a-half.
Sources
- IRS FS-2025-03: Tax deductions for working Americans and seniors
- U.S. Department of Labor: Fact Sheet #19, the Motor Carrier exemption
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