IRS Deduction of Overtime
There are ongoing questions about the deductibility of your overtime, and DFAS has just made it more complicated. Apparently, recent LES remarks have indicated that only unscheduled overtime is eligible for a deduction, but there is disagreement. These 2 articles cover the IRS guidance concerning overtime deductibility for Federal Firefighters.
IRS Issues New Guidance on Federal Firefighter Overtime Deduction | Stellar WM
DFAS Got It Wrong: Why Federal Firefighters Are Owed More Than MyPay Shows | Stellar WM
A 3rd article published last week addresses how to claim the overtime deduction even though it is not on the W-2: Your 2025 W-2 Has No Overtime Reported—Here's What to Do | Stellar WM
To be clear, only the premium portion of your overtime (0.5) is tax deductible, not the straight time portion. However, according to these 3 articles, you should get credit for your OT-in-Tour. If this situation is not resolved at the agency level, you may need assistance at the congressional level.
Please consult a Tax advisor before deducting your overtime. The following document is a letter from OPM that explains how Firefighter Pay is calculated, to include overtime: OPM Firefighter Pay Letter