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No Tax on Tips & Overtime Calculator (OBBBA)

Estimate your OBBBA no-tax-on-tips and no-tax-on-overtime federal deductions (Schedule 1-A) and the refund they add — before you file.

Estimates only — IRS Schedule 1-A and your tax software make the final call. No data leaves your browser.
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Your numbers

Tax year

Filing status

Modified AGI ($)

Qualified cash tips for the year ($)Box 7 of W-2, Forms 4070, or employer Box 14 statement

Regular hourly rate ($)

OT hours worked this year

OT pay multiplier1.5 = FLSA time-and-a-half. Only the premium half is deductible

Your deductions

Qualified OT premium

$4,400

Tips deduction

$12,000

Overtime deduction

$4,400

Total deduction

$16,400

Est. federal tax saved

$3,608

Marginal bracket

22%

Phaseout: none

How the math works

Tips (IRC §224). Up to $25,000 of qualified cash tips is deductible if your occupation customarily and regularly received tips on or before Dec 31, 2024. The deduction shrinks $100 for every $1,000 of MAGI above $150,000, reaching zero at $270,000.

Overtime (IRC §225). Only the premium portion of FLSA §7 time-and-a-half counts: hours × rate × (1.5 − 1.0) = hours × rate × 0.5. If your employer pays double time, the extra 0.5× above the FLSA minimum does not qualify. Cap is $12,500 single / $25,000 joint, same 10%-per-$1,000 phaseout above $150,000.

Estimates only — not tax advice. Both deductions are claimed on the new IRS Schedule 1-A for tax years 2025–2028. Tips and OT remain subject to payroll (FICA) tax; the deduction only removes federal income tax. Verify with IRS Publication or a CPA before filing.

Built from user complaints

What people hate about the other tools

We read the reviews of the incumbents before writing this page. Every complaint below maps to a decision in the tool above.

Employers won't report qualified tips/overtime boxes until the 2026 tax year, leaving workers to compute 2025 amounts themselves
IRS Schedule 1-A release coverage · no W-2 box to read
In this toolEnter rate, hours and multiplier — the premium-half math matches the IRS worksheets.

One-line difference: The only tips/overtime estimator that models the premium-half rule, the joint $25k OT cap and the 10%-per-$1k MAGI phaseout in one screen — constants straight from IRS Schedule 1-A instructions.

How this is paid for

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Free no signup, no card

Tips deduction (§224) with $25k cap and MAGI phaseout
Overtime premium deduction (§225) — FLSA 1.5× premium half only
Estimated federal savings at your 2025 marginal bracket

Why there is no paywall deliberate

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