Filing status
Total wages for the yearincluding tips & overtime
Tips receivedtipped occupation
Total overtime paypremium part: $2,000
Overtime rate
Children under 17
kids

Federal income tax you save

$1,680

Your top bracket: 12%

Tips deduction
$12,000
Overtime premium (qualifies)
$2,000
Overtime deduction
$2,000
Federal tax without these deductions
$4,420
Federal tax with them
$2,740

Only the overtime premium counts — for time-and-a-half, that's one-third of your total overtime pay.

You'd owe more than $1,000. Increasing withholding (Form W-4) or paying quarterly estimates can avoid an underpayment penalty.

These deductions lower federal income tax only — Social Security, Medicare and most state taxes still apply to tips and overtime.

You save$1,680

Estimates for education, not financial advice.No tax on tips & overtime calculator by Numlight ↗