No Tax on Tips & Overtime Calculator
Estimate your qualified tips and overtime deductions
Frequently Asked Questions
New federal above-the-line deductions from the 2025 tax law (the 'One Big Beautiful Bill'), available for tax years 2025 through 2028, for qualified tips and qualified overtime compensation — available whether or not you itemize.
Up to $25,000 in qualified, voluntary tips received in an eligible occupation (servers, bartenders, salon workers, personal trainers, and many other customarily-tipped roles), reported on your W-2, 1099, or tips records.
Up to $12,500 (single filers) or $25,000 (joint filers) — but only the 'extra half' portion of time-and-a-half overtime pay required by the Fair Labor Standards Act, not your full overtime paycheck.
Both deductions phase out once your modified adjusted gross income (MAGI) exceeds $150,000 (single) or $300,000 (joint) — the deduction is reduced by $100 for every $1,000 of MAGI above the threshold, reaching $0 once MAGI is $250,000 (tips) or $125,000/$250,000 (overtime, single/joint) above the threshold.
No — both are 'above-the-line' deductions available to everyone, whether you itemize or take the standard deduction.