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    OBBB Overtime Deduction Estimator

    Estimate qualifying overtime premium, the deduction cap, and rough federal income-tax savings.

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    3–5 min

    Typical time to complete

    Healthcare workers

    Designed for this audience, usable by anyone

    Educational estimate

    Verify final numbers with official records and plan documents

    Workplace benefits

    OBBB Overtime Deduction Estimator

    Estimate qualifying overtime premium, the deduction cap, and rough federal income-tax savings.

    Read: OBBB Overtime Tax Deduction Explained

    $

    Your regular base hourly rate before overtime.

    Hours over 40 in a workweek that may be FLSA overtime.

    How many weeks this year you expect those overtime hours.

    x

    Most time-and-a-half overtime is 1.5x. Some shifts may pay more.

    The OBBB deduction cap depends on filing status.

    $

    Used only to flag possible phaseout risk.

    %

    Used to estimate income-tax savings from the deduction.

    How this is calculated
    • Annual overtime hours = qualifying overtime hours/week × weeks with overtime
    • Estimated FLSA overtime premium = regular hourly rate × 0.5 × annual overtime hours
    • Potential deduction before MAGI phaseout = lesser of estimated premium or the annual cap
    • Estimated federal tax savings = potential deduction × federal marginal tax rate

    This estimates the federal income-tax deduction only. It does not estimate Social Security tax, Medicare tax, state tax, local tax, withholding timing, or every tax-return limitation.

    Annual overtime hours
    160 hrs
    Gross overtime pay
    $9,600
    Total pay for the overtime hours at the selected multiplier.
    Estimated qualifying premium
    $3,200
    Usually the 0.5x premium, not the full 1.5x overtime hour.
    Deduction cap
    $12,500
    Single / Head of household
    Potential deduction before MAGI phaseout
    $3,200
    This is capped and may be further reduced if your income is above the phaseout threshold.
    Estimated federal tax savings
    $704
    Rough estimate before any MAGI phaseout, credits, withholding effects, or tax software adjustments.
    What this means

    For healthcare workers, the key point is the half-time overtime premium. The regular-rate portion of the overtime hour is still normal taxable wage income.

    Educational only. Not individualized financial, investment, tax, legal, insurance, medical, billing, employment, or benefits advice. Results are not official eligibility, coverage, authorization, tax, billing-liability, or plan determinations.
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