No tax on tips & overtime calculator

Estimate your federal deduction for 2025–2028 in under a minute. It runs in your browser; nothing you enter is sent anywhere.

Filled in with an example. Replace the numbers with yours (amounts for one tax year).

You

Filing status

Total income (MAGI)

For most people, the same as the adjusted gross income (AGI) on Form 1040.

I have a valid Social Security number

Required to claim either deduction.

Overtime

Your overtime

Only the extra "half" of time-and-a-half required by federal law (FLSA) qualifies.

What does that amount include?

Enter only the extra premium shown on your pay stub.

Tips

Tips you received

My job is on the IRS list of tipped occupations

See the IRS list

I am self-employed

Your tips deduction can't exceed the net income from that business.

Net income from that business

I work in a specified service trade or business (SSTB)

Defined in IRC §199A (for example health, law, accounting or consulting). Tips from these businesses don't qualify.

Your deduction

Estimate for one tax year

Overtime deduction$5,000

Tips deduction$18,000

Total

$23,000

Overtime: Qualified overtime compensation is $5,000. The deduction cap is $12,500. With MAGI of $62,000, no phase-out applies. Final deduction: $5,000.

Tips: Qualified tips are $18,000. The deduction cap is $25,000. With MAGI of $62,000, no phase-out applies. Final deduction: $18,000.

This is a deduction, not a refund. It lowers your taxable income; how much tax you save depends on your tax bracket. Social Security, Medicare and most state taxes still apply.