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Overtime deduction Tips deduction Take-home pay Tipped jobs Tax brackets Guides

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Short, specific answers to the questions the headlines skipped. Each one has a calculator attached so you can put your own numbers in.

No tax on overtime, explainedWhat the deduction is, what it is worth, and why your paycheck does not change.No tax on tips, explainedThe $25,000 cap, the occupations that qualify, and the taxes you still owe.Which jobs qualify for no tax on tipsSearch Treasury's official list of 71 tipped occupations and their TTOC codes.Tips and overtime on your W-2Box 12 codes TP and TT, the new Box 14b occupation code, and what to do if they are wrong.How to claim the deductionsSchedule 1-A, Form 1040 line 13b, and the employer rule that can disqualify you.Do you still pay Social Security on tips?Yes — 7.65% of every tipped dollar, and the deduction does not touch it.Self-employed and gig workersA lower cap, a documentation rule that tightened this year, and no overtime deduction.What counts as qualified overtimeDouble time, shift differentials, union contracts and state-only overtime.Does your state follow the federal rule?Usually not — which quietly halves what most people think they are getting.

PaycheckDesk publishes free federal tax estimators built from the published IRS figures for tax year 2026. We are not accountants, we are not affiliated with the IRS, and nothing here is tax advice. Figures last verified 2026-07-31.

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