Separate FLSA premium
If a statement separately reports the FLSA overtime premium, use that amount as the starting estimate.
Educational estimate
Qualified overtime calculator
Estimate the FLSA overtime premium portion before deduction caps, phase-outs, and taxpayer-specific limitations.
Not affiliated with the IRS, Treasury, Department of Labor, payroll providers, or tax software vendors. For educational and tracking purposes only.
Calculator
Qualified overtime estimate
Select the method that matches your annual statement or pay records. For 2025, the fallback methods reflect IRS Notice 2025-69 style recordkeeping guidance.
Choose the method that fits your records
The calculator form is intentionally explicit so the result can be reviewed later by a preparer, payroll team, or HR contact.
Total time-and-a-half overtime
If the statement combines regular wages for overtime hours with the half-time premium, the educational estimate uses one third of that aggregate overtime amount.
Higher overtime rate
If overtime was paid above time-and-a-half, the estimate should isolate only the FLSA-required half-time premium portion.
No separate statement
If no annual statement is available, estimate from regular rate and overtime hours, then keep notes showing why that method was used.
How to read the result
The result is an estimated qualified overtime compensation amount before personal limitations. It is not the final deduction amount for a return.
The display also shows the filing-status cap and a MAGI warning when the optional range suggests the IRS phase-out may apply.
Documentation checklist
- Annual W-2, Form 1099, portal statement, or separate employer statement.
- Pay statements showing regular rate, overtime hours, overtime rate, and pay period.
- Notes explaining the selected method and any regular-rate approximation.
- Questions for a tax professional about taxpayer eligibility, filing status, SSN rules, and phase-out.
Official sources
Source baseline checked 2026-06-25
Review the official guidance directly
IRS FAQ: Qualified overtime compensation deduction
Defines qualified overtime compensation, FLSA overtime eligibility, deduction limits, reporting rules, and taxpayer requirements.
Open sourceIRS overview: No Tax on Overtime deduction
Summarizes the deduction cap, MAGI phase-out thresholds, Social Security number rule, and 2025 reporting note.
Open sourceIRS Notice 2025-69
Provides 2025 methods for individuals estimating qualified overtime compensation when separate reporting is not available.
Open sourceDOL overtime overview
Explains the FLSA overtime baseline for covered, nonexempt employees working over 40 hours in a workweek.
Open source