Qualified tips
Tips deduction
Estimate the allowed deduction after the $25,000 cap and MAGI phase-out.
Open the tips calculator2026 federal deduction estimator
See what the new tips and overtime deductions could save you.
Enter qualified tips or the FLSA overtime premium to compare estimated federal income tax before and after the temporary deduction.
- 2026 IRS rules
- Verified 2026-07-13
- Private: calculations stay on your device
FLSA premium
Overtime deduction
Use a reported qualified amount or estimate the ordinary half-time premium.
Open the overtime calculatorA deduction is not tax-free income. FICA still applies, and state tax treatment may be different.