How much of your overtime is tax-free?
List your workweeks from your timecards or pay stubs. Overtally finds the overtime premium week by week and job by job, includes shift differentials and bonuses in the regular rate, applies the $12,500 cap and the income phase-out, checks your W-2 code TT and fills in Schedule 1-A lines 14–21. It runs in your browser; nothing is uploaded.
How it works
- List your workweeks in the template (or any CSV or Excel sheet): employer, hours, hourly rate and any bonus or differential — or a pay stub total or the W-2 code TT figure. Drop it here, or try the sample.
- Pick the tax year and filing status and type your MAGI, then read the deduction, Schedule 1-A lines 14–21 and every check.
- Compare with your W-2 box 12 code TT and copy the lines onto Schedule 1-A.
Why Overtally
For hourly workers who get overtime — nurses, warehouse and factory staff, drivers, people with two jobs — who want the 2025–2028 overtime deduction worked out from their own timecards and checked against the W-2, without a subscription or uploading their pay.
Timecards or pay stubs
One row per workweek with hours and rate, or the overtime total from a pay stub, or the W-2 box 12 code TT figure. CSV or Excel.
Every workweek on its own
Hours over 40 in each workweek, never averaged. Two jobs are worked out separately — hours aren't added across employers.
The real regular rate
Shift differentials and nondiscretionary bonuses raise the FLSA regular rate, and so the premium. A plain “hours × ½ × base rate” misses them.
Pay stub methods
IRS Notice 2025-69 methods: time-and-a-half total ÷ 3, double time ÷ 4, the premium as shown, comp time.
Cap, phase-out, W-2 check
The $12,500 cap ($25,000 joint), $100 per full $1,000 of MAGI over $150,000 ($300,000 joint), and a comparison with your employer's code TT.
Print or export
Print the worksheet for your tax preparer, or with Pro get the Excel workbook, the weeks CSV and the employers CSV.
Simple pricing
Free for the deduction, the Schedule 1-A lines and every check. Pro for every week and employer on screen and the exports.
Free
- Any number of weeks and jobs
- The deduction, Schedule 1-A lines 14–21 and every check
- First 8 rows and 1 employer shown, print with a footer
- No signup, nothing uploaded
7-day pass
- 7 days of Pro, no subscription
- Every week and every employer, print without footer
- Excel workbook and weeks CSV
- Employers CSV
Pro Yearly Best value
- Everything in Pro
- Every tax season through 2028
- Costs less than 6 months of monthly
Prices in USD. Secure checkout and sales tax handled by our payment partner. Already bought? Enter your license key.
Tools & guides
- No tax on overtime, worked out from your own timecards
- Schedule 1-A Part III, line by line
- Check your W-2 code TT against your timecards
- Shift Differentials and Bonuses Raise Your Tax-Free Overtime
- Qualified Overtime from Pay Stubs: ÷ 3, ÷ 4 and the Other IRS Methods
- The Overtime Deduction Phase-out: $100 per Full $1,000 Over $150,000
- When your overtime changes week to week: an alternative to notaxonovertimecalc.com
FAQ
Is my data uploaded?
No. Your files are read by JavaScript in your browser tab and never sent to us or anyone else. Timecards and pay figures aren't stored, so closing the tab clears them. Settings can be saved in this browser.
What does Overtally do?
It reads your weekly hours and rates (or pay stub and W-2 figures), works out the qualified overtime for each workweek and each employer under IRC §225 and IRS Notice 2025-69, applies the $12,500 cap and the MAGI phase-out, and fills in Schedule 1-A lines 14–21 for 2025 through 2028.
What overtime counts?
Only the premium the Fair Labor Standards Act requires for hours over 40 in a workweek — the “half” of time-and-a-half, at the FLSA regular rate. The base pay for those hours, daily overtime under state law, overtime a union contract pays beyond the FLSA, and overtime paid to FLSA-exempt employees don't count.
How is the phase-out worked out?
$100 for each full $1,000 of modified AGI over $150,000 ($300,000 married filing jointly). A part of $1,000 doesn't count (Schedule 1-A line 19 rounds down). Married filing separately can't take the deduction.
What's free?
Importing any number of weeks and jobs, the deduction, Schedule 1-A lines 14–21, every check, the first 8 rows and the first employer on screen and in print (with a footer). Pro shows and prints everything and exports the Excel workbook and both CSVs.
My W-2 code TT doesn't match my weeks. Which is right?
For 2026 and later your employer must report qualified overtime in box 12 code TT. Overtally uses the employer figure when you enter it and shows your own weekly total next to it. If they differ, ask payroll; a wrong W-2 is fixed with a W-2c.
What isn't covered?
State taxes, tipped income (a separate deduction), salaried exempt jobs, and the 2026 form's line numbers if they change. Your W-2 and a tax professional come first.
Is this tax advice?
No. Overtally applies the rules it describes to the numbers you provide. It is a worksheet to check against your employer's figures.