2026 Tip and Overtime Deduction Estimator (OBBBA)

OBBBA created two Schedule 1-A deductions for tax years 2025 to 2028: up to $25,000 of qualified tips and up to $12,500 ($25,000 married filing jointly) of FLSA overtime premium pay, both phasing out above $150,000 single or $300,000 joint MAGI. This estimator runs the whole calculation per client: enter filing status, MAGI, tips, overtime premium, and a marginal rate, and it applies the caps, the $100 per $1,000 phase-out, and the estimated federal tax saving. It is built for CPAs and payroll admins running quick client estimates, with a Settings sheet holding every parameter so you can update figures as IRS guidance evolves. It pairs with the FinBoard article on booking the 2026 tips and overtime deductions.