Single vs. Married Filing Jointly — How the OBBBA Deduction Differs
The tip deduction cap is the same either way, but the overtime cap and the phase-out threshold both change with filing status.
Quick answer
The tip deduction cap ($25,000) is per return regardless of filing status. Married filing jointly doubles the overtime cap ($12,500 → $25,000) and doubles the phase-out threshold ($150,000 → $300,000 MAGI). Head of household uses the same caps and threshold as single.
| Single / HOH | Married filing jointly | |
|---|---|---|
| Tip deduction cap | $25,000 | $25,000 |
| Overtime premium deduction cap | $12,500 | $25,000 |
| Phase-out starts at (MAGI) | $150,000 | $300,000 |
Worked example: same income, both ways
$60,000 regular wages, $20,000 in tips, and $15,000 in overtime premium pay — run through the calculator once as single, once as married filing jointly:
| Single | MFJ | |
|---|---|---|
| Net OBBBA deduction | $32,500 | $35,000 |
| Estimated federal tax saved | $7,800 | $7,700 |
Married filing jointly deducts more here because the full $15,000 in overtime premium pay fits under the $25,000 MFJ cap, while single filers are capped at $12,500. This is one illustrative income combination — your numbers depend on your own tips, overtime, and marginal rate. Use the calculator for your exact figures.
Note on head of household: HOH filers use the same tip cap, overtime cap, and phase-out threshold as single filers. Our calculator estimates HOH federal tax using single-filer brackets as a close approximation, since exact HOH brackets are slightly wider.