Could Illinois treat overtime differently from the federal estimate?

Yes. State conformity and definitions can vary, and the state may not mirror federal treatment. Confirm details with the Illinois tax agency before relying on this estimate.

Illinois Overtime Tax Calculator 2025 | Federal OBBBA Savings Estimate

Estimate your federal overtime premium deduction (and possible tax impact) under the 2025 proposal, with Illinois-specific context and official sources.

Illinois context:

This calculator estimates a potential federal overtime-related savings scenario under the 2025 proposal. State and local tax outcomes depend on Illinois rules and your full household picture, so use the official sources below to validate what applies to you.

Model assumptions used in this calculator

Overtime “premium” is modeled as 0.5× your hourly rate per overtime hour (the time-and-a-half premium portion).
Annual cap: 2,500 (single) / $25,000 (married filing jointly).
Phase-out starts at MAGI 50,000 (single) / $300,000 (MFJ), reducing the deductible amount by 00 per ,000 over the threshold.
If MAGI is blank, it’s estimated from your weekly pay and overtime scenario.

How to Use This Estimate for Planning

Overtime can materially change take-home pay in Illinois, especially for warehousing, transportation, and healthcare overtime. This tool focuses on the federal side of the proposal: it models a capped overtime “premium” amount and then applies an income phase-out based on filing status and estimated household income (MAGI). The output is an estimate meant to help you compare scenarios (for example: “What if I work 6 more OT hours per week?”), not a guarantee of your final tax filing result.

If you leave MAGI blank, the calculator estimates it from the entered weekly pay and overtime scenario. If you know your approximate household income, entering MAGI can reduce surprises because phase-out behavior is driven by that number. Either way, remember that real returns can differ based on deductions, credits, and how a final law is written and implemented.

What to confirm (and where)

Illinois Department of Revenue: state income tax and withholding rules (if applicable), definitions, and current guidance.
IRS tools: whether a W-4 update makes sense after you model a scenario here.
Your pay stub: how overtime is computed and reported for your specific job (rules can vary by employer and pay type).

A practical workflow is: (1) model a few overtime scenarios here, (2) check official guidance, and (3) only then adjust withholding if you’re confident the change is appropriate. If you want to share your scenario with a spouse or coworker, use the Share/Copy buttons to include the exact inputs in the link.

What to double-check in Illinois

This estimate focuses on the proposed federal overtime deduction. To avoid surprises in Illinois, cross-check state rules and update your withholding assumptions when your overtime changes.

Use Illinois official guidance from the state tax agency site.
Re-check your federal withholding with the IRS Tax Withholding Estimator if your overtime pattern changes.

More context: Guide: State conformity & withholding.

Illinois FAQ

Quick answers to common questions about the federal overtime deduction estimate for Illinois.

Does this estimate include Illinois state income tax rules?

No. This tool estimates a federal deduction related to overtime premium pay. State rules can differ. For Illinois-specific guidance, review the Illinois tax agency website.

Where can I verify official information for Illinois?

Use IRS resources for federal withholding and forms, and the Illinois tax agency for state filing guidance and updates.

Will Illinois automatically follow federal changes?

Not always. Some states conform to federal rules, while others decouple or adopt changes differently. Check official updates from the Illinois tax agency.

Should I adjust withholding if I use this estimate in Illinois?

Possibly. If your overtime or income changes, re-check federal withholding using IRS tools and review Illinois guidance so your paycheck withholding and filing assumptions stay consistent.

Before you rely on this estimate, check whether Illinois conforms to federal deductions and how your payroll defines overtime earnings. If needed, validate withholding using IRS resources and review guidance from the Illinois tax agency.

State-specific scenario for Illinois

Scenario: you receive irregular overtime (on‑call weeks) and your withholding swings month to month. Confirm how your state handles part‑year filing and how withholding should be adjusted for the months you worked there. For official guidance, compare your inputs against the IRS Withholding Estimator and your official Illinois tax agency.

How to use this estimate in Illinois

Three common use cases to help you decide what to check next (federal estimate only; state rules can differ).

Use case 1: paycheck withholding sanity‑check

If your overtime changes often, use this result as a starting point and then sanity‑check your paycheck withholding with the IRS Withholding Estimator. To see what inputs drive the number, review Methodology.

Use case 2: moved, part‑year, or multi‑state work

If you moved, work across state lines, or file part‑year, confirm residency and withholding guidance before relying on a federal-only estimate. Start with the official Illinois guidance, then use our state checklist. See how we use sources.

Use case 3: planning & documentation

For planning, keep the pay periods you modeled and your employer’s overtime definition. Read limitations and the disclaimer; if anything feels unclear, use Contact to suggest an official source.

Mini how-to by work situation in Illinois

A federal-only estimate can still help planning. In Illinois, state withholding and filing rules can differ from federal rules, especially around residency or part‑year work. Confirm details on the official state guidance page. Use official tools like the IRS Withholding Estimator, review Form W‑4, and check official Illinois tax guidance.

Hourly / shift workers

When your schedule changes (extra shifts, weekend coverage), re-check your federal withholding using the IRS estimator and confirm your W‑4 still matches your current pay mix. Save two recent pay stubs so you can spot whether withholding moved in the direction you expected. State withholding rules in Illinois can differ from federal expectations—double‑check residency/part‑year guidance on the official site. Official links: IRS estimator, Form W‑4, Illinois tax guidance.

Salaried with overtime

For salaried roles with periodic overtime, the biggest lever is usually withholding accuracy rather than the label on your salary. Use the IRS estimator, then decide whether a W‑4 adjustment makes sense and confirm with payroll how supplemental/overtime pay is handled. Illinois may apply state-specific withholding and residency rules, so confirm local guidance before making changes. Official links: IRS estimator, Form W‑4, Illinois tax guidance.

Multiple jobs or job change

If you have more than one job (or you changed jobs mid‑year), withholding can get out of sync quickly. Run the IRS estimator with combined income, then check whether each employer’s withholding settings are consistent with the estimator’s guidance. Illinois may apply state-specific withholding and residency rules, so confirm local guidance before making changes. Official links: IRS estimator, Form W‑4, Illinois tax guidance.

Official state tax pointers

Use official pages to confirm residency rules, part-year situations, and paycheck withholding.

Illinois Overtime Tax Calculator (2025)