The overtime deduction for police officers.

Between court appearances, holdovers, and mandatory details, officers rack up more overtime than almost any profession. The premium half of it is now deductible — with one law-enforcement-specific wrinkle worth knowing.

By the Master Plan Bookkeeping tax representation practice

IRS-authorized representation practice

Police overtime is structural: court time lands on days off, shifts hold over, details and events demand coverage. Departments routinely see officers earn $15,000–$30,000 in annual overtime wages. Under the 2025 law, the premium third of those time-and-a-half wages is deductible — up to $12,500 ($25,000 joint).

The law-enforcement wrinkle is FLSA §207(k): public-safety agencies may use extended work periods (up to 28 days) instead of the standard 40-hour week, which changes where federally-required overtime begins. Overtime your department pays because of contract or state rules before the FLSA threshold isn't "qualified" — only the federally-required premium counts. Officers whose contracts are more generous than the FLSA need the qualified number separated out, which is precisely what pay stubs don't do.

Off-duty security details paid by third parties through the department generally follow the same analysis as regular wages, while genuinely independent 1099 detail work falls outside the deduction. If your 2025 return skipped the deduction — most did, since the qualified amount appears nowhere obvious — an amendment recovers it.

Typical Officer OT

$15,000–$30,000/yr in time-and-a-half wages

What's Deductible

FLSA-required premium — ⅓ of qualifying OT wages

The §207(k) Wrinkle

Extended work periods shift where FLSA OT begins

Deduction Cap

$12,500 single · $25,000 joint

Court Time / Holdover

Qualifies when it triggers FLSA overtime

1099 Detail Work

Outside the deduction (no FLSA employer)

— Worked Example —

An officer at a $38/hour regular rate with 400 overtime hours (about 8/week) earned $22,800 in time-and-a-half wages. The premium third — $7,600 — deducts, worth roughly $1,672 at the 22% bracket.

Figures above are screening estimates under the 2025 federal rules (P.L. 119-21), not tax advice. A licensed professional confirms actual amounts from your W-2 and filed return before anything is submitted to the IRS. Learn more at the 2025 Refund Checkup.

— Police Officers Questions —

What police officers actually ask.

Not necessarily. The deduction covers overtime the FLSA requires — for most agencies, hours past the §207(k) work-period threshold or the 40-hour week. Contractual daily overtime that federal law wouldn't require isn't qualified overtime. Departments using 207(k) schedules make this genuinely case-specific, which is why a professional review matters here more than for most jobs.

Court appearances are compensable work time. When they push you past the FLSA threshold for your work period, the resulting premium pay qualifies like any other overtime.

Stipends aren't overtime and don't qualify directly — but like shift differentials, some stipends legally belong in your FLSA "regular rate," which raises the premium owed and deductible. It's a detail worth having reviewed.

$25,000 on a joint return — covering both spouses' combined qualified premium. A two-officer household with heavy overtime can realistically approach it.

— Keep Reading —

Worth checking next.

Overtime · First Responders

The overtime deduction for police officers.

What police officers actually ask.

My contract pays overtime after 8 hours a day. Does all of it qualify?

Does court time on my day off count?

What about my K-9, uniform, or equipment stipends?

My spouse and I both work overtime. What's our joint cap?

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