No Tax on Tips & Overtime: free deduction calculator and plain-English guides

The 2025 federal law (Public Law 119-21) created two new deductions for tax years 2025–2028: up to $25,000 of qualified tips and up to $12,500 ($25,000 joint) of qualified overtime premium pay. Both phase out above $150,000 MAGI ($300,000 joint). Estimate yours →

Guides

• 7 Common Mistakes Claiming No Tax on Tips or Overtime – Avoid the errors that shrink or void your deduction: full overtime pay, filing separately, missing SSN and more.
• How to Claim No Tax on Tips and Overtime on Your Return (Schedule 1-A) – Step-by-step: where the tips and overtime deductions go on Form 1040 and what records you need.
• No Tax on Tips: Federal Rules Explained (2025–2028) – Who qualifies for the qualified tips deduction, the $25,000 cap, the income phase-out and what doesn't count.
• No Tax on Overtime: How Much Will I Save? Real Examples – Worked examples of the overtime premium deduction and the approximate federal tax saved at common tax brackets.
• No Tax on Tips & Overtime Phase-Out Explained (MAGI $150,000 / $300,000) – How the $100-per-$1,000 reduction works, with worked examples for single and joint filers.
• What Counts as Qualified Overtime for the No Tax on Overtime Deduction – Only the FLSA-required premium (the 'half' in time-and-a-half) is deductible, up to $12,500 or $25,000 joint.
• No Tax on Tips for Self-Employed and Gig Workers – How independent contractors, rideshare and delivery drivers can deduct qualified tips, and the net income limit.
• Does No Tax on Tips Apply to State Taxes? – The federal deduction doesn't automatically change state income tax. Here's what to check.
• Which Jobs Qualify for No Tax on Tips? Eligible Occupations – The deduction applies only to occupations on the Treasury/IRS list of jobs that customarily received tips before 2025.
• W-2 Box 12 Codes TP and TT: Tips and Overtime Reporting – What box 12 code TP (tips) and TT (qualified overtime) mean, and what happened on 2025 W-2s.