# Police officer tax deductions: what still counts after the federal changes

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By [Arthur Teboul](/authors/arthur-teboul), Founder, DokuTrak. Published 2026-11-02, updated 2026-11-02.

> **In brief:** Federal tax deductions for police officers are narrow: since 2018 the code has barred uniforms, duty gear and union dues as employee costs, and that bar is now permanent ([26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67)). What still counts is the FLSA overtime deduction, the PSO exclusion for retirees, off-duty detail work on Schedule C, and state deductions where allowed.

## The checklist: Police officer tax file: overtime, comp time, details and PSO

**Not advice.** This page is general information, not tax, legal or HR advice. Rules change: check the cited source and ask your own professional before you rely on it. Last reviewed October 25, 2026.

Start with the department pay group: from 2026 the W-2 overtime box sets the deduction. Keep the state-only group even if you do not need it this year, since a move to another state can change that.

### Department pay and overtime

- [ ] Form W-2 from the department: From 2026, check box 12 code TT for qualified overtime; plus a W-2 from any other agency
- [ ] Payroll statement of FLSA overtime premium: For 2025 returns; the FLSA portion only, not total overtime pay
- [ ] Comp time record for the year: Hours used or cashed out in the year, and the 7(k) work period length
- [ ] Form W-2c, if code TT is missing or too low: Request it from payroll before filing
- [ ] Final pay stub of the year: Overtime hours and rates, to check against the W-2
- [ ] Department reimbursement records for gear or uniforms: Paid-back items are not deductible on any return

### Off-duty and detail work

- [ ] Form 1099-NEC from each detail or security client: Match against your own log of jobs and payments
- [ ] Detail agreements or invoices: Show who paid and whether you were a contractor
- [ ] Receipts for gear, licenses and training used for the detail: Write the detail name and date on each
- [ ] Mileage log for trips to details: Date, start, end and purpose of each drive; Publication 463 sets which ones count
- [ ] Form 1040-ES payment confirmations: Estimated tax paid on detail income

### Retired officers

- [ ] Form 1099-R from the governmental pension plan: One per plan, including any DROP payout
- [ ] Health or long-term care premium statements: Premiums for you, a spouse or dependents, for the PSO exclusion
- [ ] Retirement letter showing disability or normal retirement age: Supports eligibility for the exclusion

### State return only, where allowed

- [ ] Uniform purchase and cleaning receipts: Itemized, with the date
- [ ] Duty gear receipts: holster, boots, body armor not issued: And any firearm or ammunition the department required but did not provide
- [ ] Union, FOP or association dues statement: Year-end total from the union
- [ ] Department memo listing required items: Shows the costs were required and not reimbursed

### Household

- [ ] Night and weekend shift child care: provider name, address, tax ID: With the amount paid to each provider, for Form 2441
- [ ] Last year’s return: Check that no federal employee expenses were claimed by mistake

Download: [PDF](https://dokutrak.com/downloads/pseo-v2/f1-tax-document-checklists/police-officers.pdf) · [Word](https://dokutrak.com/downloads/pseo-v2/f1-tax-document-checklists/police-officers.docx) · [Excel tracker](https://dokutrak.com/downloads/pseo-v2/f1-tax-document-checklists/police-officers.xlsx)

## Tax deductions for police officers: uniforms, gear and dues

Officers used to write off boots, holsters, dry cleaning and association dues on Schedule A. Those costs were miscellaneous itemized deductions, and the law bars every one of them for tax years beginning after 2017 ([26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67)). The 2025 law struck the date that would have ended the bar, so it now has no end ([26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67)).

Form 2106 is no help to a sworn officer either. It is open to four narrow groups, and an officer fits none of them unless they also drill in the reserves ([Form 2106 instructions](https://www.irs.gov/instructions/i2106)). A **fee-basis official** is someone paid by the fee for each service, not a salaried officer, so a city or county department does not fit.

Two things are still worth doing with gear receipts. First, ask the department to pay you back under its policy, since that money is not taxed. Second, file the receipts away for a state return, since some states still count employee costs.

| Item | Federal return | Where it can still help |
| --- | --- | --- |
| Uniforms, boots, dry cleaning | Not deductible ([26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67)) | State return, where allowed |
| Duty gear, firearm, ammunition not issued | Not deductible ([26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67)) | State return; department reimbursement |
| Union and FOP dues | Not deductible ([26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67)) | State return, where allowed |
| FLSA overtime premium | Deduction for 2025 through 2028 ([IRS, new deductions for workers](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors)) | Schedule 1-A; from 2026, only the W-2 box 12 code TT amount ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)) |
| Comp time instead of overtime cash | Counts in the year you use it or cash it out ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)) | Payroll record of comp hours used or paid out |
| Off-duty detail paid on Form 1099-NEC | Business income and expenses on Schedule C | Gear used for that work |
| Retiree health premiums from the pension | Up to $3,000 excluded ([IRS Publication 575](https://www.irs.gov/publications/p575)) | The PSO entry on the return |

## The overtime deduction for officers on a 7(k) schedule

Patrol officers often work long shifts, so the overtime deduction can matter. It covers only the premium part of overtime that section 7 of the Fair Labor Standards Act requires ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)). The cap is $12,500 per return, or $25,000 when filing jointly, and it shrinks as modified AGI rises past $150,000, or past $300,000 for a couple ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)).

Police pay adds a twist. Under section 7(k), a department can set a work period of 7 to 28 days instead of a 40-hour week ([29 CFR 553.230](https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-553/subpart-C/section-553.230)). Law enforcement overtime is then required only after 171 hours in a 28-day period, or 86 hours in a 14-day period ([29 CFR 553.230](https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-553/subpart-C/section-553.230)). Hours a union contract pays at time-and-a-half before that line are not FLSA overtime, so they do not count ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)).

Many departments bank **comp time**, paid time off given instead of overtime cash under 29 USC 207(o) ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)). The IRS counts its premium in the year the comp time is paid: when you take the day off, or when unused hours are cashed out at separation ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)). Earning the hours does not count, so comp time banked in 2025 and used in 2026 belongs to the 2026 return ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)).

The paperwork changed for 2026. For tax years after 2025, the only overtime an officer can deduct is the code TT figure the department enters in W-2 box 12 ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)). If that amount is missing or too low, ask payroll for a Form W-2c, because a substitute Form 4852 does not count ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)). A 2025 return is different: IRS relief in Notice 2025-69 lifted the W-2 condition for that year, and a payroll statement of the FLSA premium serves instead ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)).

Sergeants and other ranks paid a salary may be exempt from FLSA overtime as executive employees. An exempt officer gets no qualified overtime, even when a union contract pays overtime ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)). Confirm your status with the department first.

## Off-duty details and security work paid on Form 1099-NEC

Side jobs such as event security, private details and court consulting are often paid directly to the officer. A promoter or security firm that treats you as a contractor reports your detail pay on Form 1099-NEC once it reaches $600 for 2025 ([Form 1099-NEC instructions (2025)](https://www.irs.gov/pub/irs-prior/i1099mec--2025.pdf)), or $2,000 for 2026 ([Form 1099-NEC instructions](https://www.irs.gov/instructions/i1099mec)). The [1099 contractor checklist](/checklists/tax-documents/independent-contractors) covers those forms in full. Report every detail on Schedule C even if no form arrives.

That side work changes the expense picture. Gear, licenses and mileage tied to the detail become business expenses on Schedule C. Keep each receipt with the date and the detail it served. You also owe self-employment tax on the profit, so keep a record of any estimated payments.

Some departments run details through their own payroll instead. Then the pay is on your W-2, and the gear for it stays nondeductible on the federal return.

## Retired officers: the PSO exclusion on Form 1099-R

A **PSO** is an eligible retired public safety officer, which covers law enforcement officers, firefighters, chaplains and rescue squad or ambulance crew ([IRS Publication 575](https://www.irs.gov/publications/p575)). If you retired for disability or at normal retirement age, you can exclude up to $3,000 of pension money used for health or long-term care premiums ([IRS Publication 575](https://www.irs.gov/publications/p575)).

The premiums can cover you, your spouse or your dependents ([IRS Publication 575](https://www.irs.gov/publications/p575)). The money no longer has to go straight from the plan to the insurer for distributions after December 29, 2022 ([IRS Publication 575](https://www.irs.gov/publications/p575)). The pension must come from a governmental plan of the employer you retired from ([IRS Publication 575](https://www.irs.gov/publications/p575)).

Box 2a of Form 1099-R does not reflect this exclusion, so the pension statement alone will overstate taxable income ([IRS Publication 575](https://www.irs.gov/publications/p575)). Your preparer reports the full payment, then the taxable amount, and checks the PSO box ([IRS Publication 575](https://www.irs.gov/publications/p575)). Bring the Form 1099-R from the pension and a statement of the premiums you paid. The amount you exclude cannot also go on Schedule A as a medical expense ([IRS Publication 575](https://www.irs.gov/publications/p575)).

## State returns that still allow employee costs

Some states did not follow the federal change. California, for example, does not conform to the federal suspension of miscellaneous itemized deductions ([California Schedule CA instructions](https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html)). On a state like that, uniforms and gear can still help.

A state deduction needs the same proof the federal one once did. Keep the receipts, the department memo that lists the items you must buy, and any reimbursement statement. **Commuting** is the drive from home to your regular station, and it is personal on any return. The [W-2 guide](/documents/w-2) shows where state wages and withholding appear.

## Questions people ask

### Can police officers deduct uniforms on a federal return?

No. A uniform an officer buys is an unreimbursed employee cost, and the 2025 law turned the bar on those into a permanent one ([26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67)). Some states, such as California, still allow them ([California Schedule CA instructions](https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html)).

### Does the no tax on overtime deduction apply to police overtime?

Yes, but only the premium the FLSA requires counts ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)). On a 28-day law enforcement schedule, that overtime starts after 171 hours ([29 CFR 553.230](https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-553/subpart-C/section-553.230)).

### What does PSO mean on Form 1040?

PSO stands for public safety officer. A retired officer can exclude up to $3,000 of pension money used for health or long-term care premiums, and checks the PSO box on the pension line of the return ([IRS Publication 575](https://www.irs.gov/publications/p575)).

### Does comp time count for the overtime deduction?

Yes, once it is paid. Comp time earned under 29 USC 207(o) counts in the year you use it or cash it out, not the year you earn it, and only the FLSA premium part qualifies ([IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf)).

## Sources

- [26 U.S.C. 67](https://www.law.cornell.edu/uscode/text/26/67): Miscellaneous itemized deductions are barred for tax years beginning after December 31, 2017; P.L. 119-21 sec. 70110 struck the end date.
- [Form 2106 instructions](https://www.irs.gov/instructions/i2106): Form 2106 may be used only by Armed Forces reservists, qualified performing artists, fee-basis officials and employees with impairment-related work expenses.
- [IRS FS-2026-13, overtime deduction FAQs](https://www.irs.gov/pub/taxpros/fs-2026-13.pdf): Only overtime required by FLSA section 7 qualifies, not contract overtime or overtime of exempt employees; $12,500 ($25,000 joint), phase-out above $150,000 ($300,000 joint); 207(o) comp time counts when paid (Q18); from 2026 only the W-2 box 12 code TT amount, corrected by W-2c, not Form 4852; Notice 2025-69 relief for 2025.
- [IRS, new deductions for workers](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors): The overtime deduction applies for tax years 2025 through 2028.
- [29 CFR 553.230](https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-553/subpart-C/section-553.230): Under section 7(k), law enforcement overtime on a 28-day work period is required after 171 hours (212 for fire protection).
- [IRS Publication 575](https://www.irs.gov/publications/p575): Eligible retired public safety officers can exclude the smaller of $3,000 or the premiums paid from a governmental plan; direct payment is no longer required after December 29, 2022.
- [Form 1099-NEC instructions](https://www.irs.gov/instructions/i1099mec): For tax years after 2025, the reporting threshold rises to $2,000.
- [Form 1099-NEC instructions (2025)](https://www.irs.gov/pub/irs-prior/i1099mec--2025.pdf): For payments made in 2025, Form 1099-NEC reports nonemployee compensation of $600 or more.
- [California Schedule CA instructions](https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html): California does not conform to the federal suspension of miscellaneous itemized deductions, including unreimbursed employee expenses.

## More on this topic

- [Form W-2](/documents/w-2)
- [Form 1099-R](/documents/1099-r)
- [Military tax deductions checklist](/checklists/tax-documents/military)
- [Tax deductions for nurses](/checklists/tax-documents/nurses)

## About the author

Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. [Arthur Teboul](/authors/arthur-teboul).

How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? [Contact us](/contact).

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