Is all overtime tax-free?

No. The temporary federal deduction generally applies only to qualified overtime premium compensation above the regular rate, subject to eligibility, annual caps, and an income phaseout.

What amount goes into the calculator?

Use the qualified overtime amount reported by your employer or payer. For tax year 2025 only, IRS transitional guidance allows reasonable work-record estimation in some cases.

2025–2028 federal deduction

No Tax on Overtime Calculator

Estimate the deduction that may apply to qualified overtime premium compensation. Overtime is not broadly tax-free, and this tool does not calculate a refund or total tax bill.

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Federal deduction estimator

Estimate qualified overtime

Private in-browser math

Authoritative sources

Check the rule, not the headline.

Guidance can change. Use the current IRS form instructions or a qualified tax professional for filing.

IRS qualified overtime Q&AEligibility, reporting, and qualified premium rules Schedule 1-ACaps and phaseout calculation Form W-2 instructionsBox 12 code TT reporting from 2026 Department of Labor overtime guidanceFLSA overtime context

Scope

A deduction estimate, not tax advice.

TipPouch does not determine whether your occupation, employer, overtime, filing status, or documentation qualifies. It does not prepare a return, estimate a refund, calculate state tax, or replace employer and IRS records.