Industry FocusFebruary 15, 2026
Railroad Workers: Yes, You Qualify for the Overtime Deduction
Railroad employees have unique tax situations, but the OBBB overtime deduction still applies. Here's how to claim it correctly.
🚂 Good News for Railroad Workers
Despite being covered by the Railway Labor Act instead of FLSA, railroad employees who work over 40 hours and receive premium pay can still claim the OBBB overtime deduction.
Special Railroad Rules
- Look for "OBBBTT" on your Form W-2 or railroad-specific tax documents
- Premium pay for hours over 40 qualifies, even under RLA
- Holiday and weekend premium rates count toward the deduction
- Railroad Retirement benefits don't affect OBBB eligibility
Documentation
The Railroad Retirement Board has issued guidance that railroad employers should report qualifying overtime premium in the same OBBBTT format as other employers.