Federal income tax planning
No Tax on Overtime Deduction Calculator
Estimate the overtime premium deduction, MAGI phaseout, and federal income tax savings for the 2025-2028 rule.
Deduction estimate
Allowed overtime deduction$5,000
Qualified overtime$5,000
Annual cap$12,500
MAGI phaseout$0
Tax savings estimate$1,100
$15,000 of total overtime pay is treated as $5,000 of overtime premium.
The current deduction reaches zero around $200,000 of MAGI.
Planning notes
- The deductible amount is generally the extra half of time-and-a-half pay, not the full overtime paycheck.
- The annual cap is $25,000 for joint filers and $12,500 for other eligible non-joint returns.
- Married taxpayers must file jointly; this calculator shows zero for married filing separately.