Combined Overtime & Tips Calculator
Calculate both deductions at once. Many workers earn both overtime and tips—see your total federal tax savings.
$12,500-$25,000
Max overtime deduction
$25,000
Max tips deduction
Up to $50,000
Potential combined (joint)
Combined Overtime & Tips Calculator
Overtime Information
Tips Information
Important: This calculator provides estimates for educational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. The calculations shown are based on our interpretation of 26 U.S.C. §§ 224-225 and IRS guidance as of 2026. Your actual tax situation may differ. Consult a qualified tax professional for advice specific to your circumstances.
How the Two Deductions Work Together
The overtime and tips deductions are separate deductions with separate caps. If you qualify for both, you can potentially claim up to $37,500 (single) or $50,000 (joint filing) in total deductions.
However, both deductions share the same MAGI phase-out thresholds ($150,000 single / $300,000 joint), so high earners may see both deductions reduced.
Important: Amounts cannot overlap. Tips received through your employer cannot also be claimed as overtime, and vice versa.
Common Scenarios
Restaurant Server with Overtime
A server who works overtime shifts can claim both the tips deduction (for tips earned) and the overtime deduction (for the premium half of overtime wages).
Hotel Worker
A bellhop or housekeeper who earns tips and works extra hours during busy seasons may qualify for both deductions.
Rideshare Driver
If classified as an employee (rare) with overtime, a rideshare driver could potentially claim both tips and overtime deductions.
Casino Dealer
Dealers who work overtime and receive tips can claim both deductions, subject to the applicable caps and phase-outs.