Methodology

What we estimate

• Overtime premium modeled: 0.5× hourly rate per overtime hour (the premium portion of “time-and-a-half”).
• Annualization: weekly scenario × 52 weeks.
• Caps: 2,500 (Single) / $25,000 (Married filing jointly).
• Phase-out: starts at 50,000 (Single) / $300,000 (MFJ), reducing by 00 per ,000 over the threshold.

Inputs

• Weekly Regular Pay: used to derive hourly rate (weekly ÷ 40).
• Weekly OT hours: used to compute overtime premium.
• MAGI (optional): if blank, we estimate MAGI from the modeled total annual pay in the scenario.

Important limitations

• This is not a final tax computation. “Tax saved” depends on your marginal rate and full return details.
• Eligibility and reporting rules can change; verify with official IRS guidance.

State taxes and conformity

This calculator focuses on the projected federal overtime deduction estimate. State tax treatment can differ, including whether a state conforms to federal deductions and how residency or part‑year filing affects your return. Use the state pages as a starting point and verify with official state guidance.

If you want a quick overview, see State income tax conformity and the All states hub.

Sources and updates

We link to primary sources (IRS publications and official state agencies) and update pages when guidance changes. See how we update and our source rules.