Calculator inputs
Overtime multiplier
Weekly total
$1,300.00
Regular pay (40h × $25.00)$1,000.00
Overtime (8h × $37.50)$300.00
Annualized (52 wk)$67,600
2026 OBBBA new deductions
Overtime premium (0.5× rate × OT hours × 52)$5,200
Deductible (capped at $12,500)$5,200
Qualified tip deduction$0
Only the premium portion (0.5× regular rate) of overtime is deductible, capped at $12,500 single/HoH · $25,000 married. Taken on tax return, not through payroll — your paycheck withholding doesn't change; you claim the deduction when filing. Tips deduction is available for qualifying tipped occupations only.