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Guides, explainers, and state updates for tipped employees and overtime workers.

Overtime

How to Calculate Your No Tax on Overtime Deduction (Only the Premium Counts)

Only the 'half' premium of time-and-a-half qualifies for the OBBBA overtime deduction — not your full overtime pay. Here's the math with 2026 examples.

Tax Strategy

OBBBA Income Limits: How the Tips and Overtime Deductions Phase Out Above $150K

The OBBBA tips and overtime deductions shrink $100 for every $1,000 of MAGI over $150,000 ($300,000 joint). See exactly where each deduction hits zero.

State News

Will Your State Still Tax Your Tips and Overtime in 2026?

'No tax on tips and overtime' is federal only. Whether your state follows depends on conformity — and many states still tax both. Find your state's status.

Overtime

OBBBA Overtime Tax Exemption: Keep More of Your Time-and-a-Half Pay in 2026

The OBBBA overtime exemption lets eligible workers deduct up to $12,500 (or $25,000 if married) in overtime wages from federal income tax through 2028. Here is who qualifies and how much you can save.

Tax Strategy

Adjust Your W-4 After OBBBA: Stop Overpaying Tax on Tips and Overtime

Your employer may be withholding too much federal tax if you earn tips or overtime. Updating your W-4 to reflect your OBBBA deductions puts the savings in every paycheck — not just at tax time.

Tips & Tipping

No Tax on Tips Under OBBBA: The 2026 Guide for Tipped Workers

Under the One Big Beautiful Bill Act, tipped workers can deduct up to $25,000 in qualifying tip income from federal taxes through 2028. Here's exactly how it works.

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