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YebboTax OBBB Qualified Overtime Calculator

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YebboTax OBBB Qualified Overtime Calculator
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OBBB Qualified Overtime Calculator

Estimate the qualified overtime deduction for the federal “no tax on overtime” rule. This calculator isolates the overtime premium portion and then applies the annual cap and estimated MAGI phaseout.

Built for YebboTax website use, tax-prep education, and quick paystub checks. This is an estimate only and does not replace IRS instructions or a full tax review.

YebboTax • 619-255-5530

Input your numbers

YebboTax Web Tool
Joint returns get a higher cap and higher MAGI threshold.
The deduction is currently described by the IRS as effective for 2025 through 2028.
Used to estimate the phaseout.
The calculator still runs, but the warning changes based on your answer.
Formula used
Qualified OT = Total OT Pay − (Regular Rate × OT Hours) Allowed Deduction = min(Qualified OT, annual cap) − MAGI phaseout reduction

Estimated result

Federal estimate
Estimated qualified overtime deduction
$0.00
Enter your numbers and click Calculate.
Total OT pay
$0.00
Regular-rate portion
$0.00
Raw qualified OT
$0.00
Phaseout reduction
$0.00
Interpretation
This tool estimates only the federal OBBB overtime deduction.

What information you need from the paystub

  • Regular hourly rate
  • Overtime hours
  • Overtime pay line or OT multiplier
  • Whether the employee is actually eligible for FLSA overtime
  • MAGI for the tax return
  • For 2025, extra records may be needed if qualified OT was not separately reported

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