How much qualified overtime compensation can I deduct?
Estimate the Schedule 1-A no-tax-on-overtime deduction for 2025, 2026, or 2027 planning. Enter qualified overtime premium compensation, filing status, and MAGI to see the estimated deduction after the statutory cap and phaseout.
overtime deduction calculator
Quick answer
Qualified overtime premium compensation can be deductible up to $12,500, or $25,000 on a joint return, before the MAGI phaseout.
Also answers
- no tax on overtime calculator
- qualified overtime compensation
- Schedule 1-A overtime
- overtime tax deduction
Good fit when
- Employees with overtime premium pay
- Joint filers with overtime
- Withholding checkups
Have ready
- Filing status
- Schedule 1-A MAGI
- Qualified overtime compensation
Result you get
Estimated overtime deduction after cap and phaseout.
How this calculation works
- Uses the qualified overtime compensation entered by the user.
- Caps the deduction at $12,500, or $25,000 for joint filers.
- Uses the $150,000 MAGI threshold, or $300,000 for joint filers.
- Reduces the deduction by $100 for each full $1,000 of MAGI over the threshold.
Common mistakes and caveats
- The deduction generally applies to the overtime premium portion, not all overtime wages.
- Qualified overtime must be reported on an eligible statement or directly by the taxpayer.
- Married taxpayers must file jointly to claim this deduction.
Last updated & sources
Last updated June 22, 2026.
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