2026 Federal Tax Planning

Tips & Overtime Tax Savings

See how qualifying deductions could lower your federal income tax—not all your taxes.

Tell us about your paycheck

Enter full-year 2026 totals. This first version is for employee paycheck income, not self-employed tips.

How will you file?Use the status you actually qualify for.

Total annual taxable wagesInclude all tips and overtime in the total. For a joint return, include both spouses’ wages.

Reported qualifying tipsVoluntary customer tips in an IRS-listed occupation—not automatic service charges. Enter 0 if none.

Qualifying overtime PREMIUM onlyOnly the extra FLSA-required half-time premium, not your entire overtime pay. At exactly time-and-a-half, total overtime pay ÷ 3 is the premium. Ask payroll if unsure.

Has payroll or your tax professional confirmed eligibility?All amounts meet the IRS tip / FLSA overtime rules; required employment-valid SSNs (do not enter them); U.S. residents under 65, not blind or dependents; wages only, standard deduction and no other adjustments. Confirm any specified-service-business tip restrictions.

This tool calculates in your browser tab and does not submit these amounts. No SSNs, bank details or tax documents are needed.