Frequently Asked Questions
Common questions about the No Tax on Overtime Calculator and overtime tax deduction.
The No Tax on Overtime Calculator is a free tool that helps you estimate your federal tax savings from the new overtime tax deduction based on the One Big Beautiful Bill Act. It calculates how much you can potentially save on federal taxes by deducting overtime pay premiums for tax years 2025-2028.
The One Big Beautiful Bill Act is federal legislation that allows eligible workers to deduct overtime pay premiums from their federal taxes. This deduction is available for tax years 2025, 2026, 2027, and 2028, providing tax relief for hardworking Americans who work overtime hours.
To be eligible for the overtime tax deduction, you must:
- Be eligible for overtime pay under the Fair Labor Standards Act (FLSA)
- Have annual income below $160,000
- Work overtime hours (over 40 hours per week)
- Receive overtime pay at time-and-a-half (1.5x regular rate)
You can deduct the overtime premium portion (50% of your regular hourly rate) for each overtime hour worked. The maximum annual deduction is:
- Single filers: $12,500
- Married filing jointly: $25,000
Phase-out thresholds apply for higher incomes starting at $150,000.
Our calculator provides estimates based on current federal tax laws and the One Big Beautiful Bill Act provisions. However, tax situations vary, and this calculator is for educational purposes only. We recommend consulting with a qualified tax professional for personalized advice.
No, we do not store any of your financial information. All calculations are performed locally in your browser. We never collect, store, or transmit your income, hourly rates, or other financial data. Your privacy and security are our top priorities.
The overtime tax deduction is available for the following tax years:
- 2025 tax year (filed in 2026)
- 2026 tax year (filed in 2027)
- 2027 tax year (filed in 2028)
- 2028 tax year (filed in 2029)
Yes, salary employees can use this deduction if they are eligible for overtime pay under the Fair Labor Standards Act (FLSA). This typically includes non-exempt salary employees who receive overtime compensation for hours worked over 40 per week.
The overtime deduction will be claimed on your federal tax return. You'll need to:
- Keep detailed records of your overtime hours and pay
- Calculate the eligible overtime premium amount
- Report the deduction on the appropriate tax form
- Consult with a tax professional for specific filing instructions
Yes, our No Tax on Overtime Calculator is completely free to use. There are no fees, registration requirements, or hidden costs. We believe that understanding your tax benefits should be accessible to everyone.
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