OBBBA 'No Tax on Overtime' Deduction Mechanics — Statutory Parameters with Worked-Example Estimates (2025-2028)

An open reference dataset for the 'No Tax on Overtime' deduction created by the One, Big, Beautiful Bill Act (Public Law 119-21, signed July 4, 2025; IRS Fact Sheet FS-2025-03). For tax years 2025 through 2028, a worker who receives qualified overtime compensation may take an above-the-line federal income tax deduction for the overtime pay that exceeds their regular rate — that is, the extra 'half' portion of time-and-a-half required by Section 7 of the Fair Labor Standards Act (FLSA). The deduction is capped at $12,500 for single filers and $25,000 for joint filers, phases out above modified AGI of $150,000 ($300,000 joint), is available to both itemizers and non-itemizers, and requires the filer's SSN and (if married) a joint return. It is a deduction that reduces taxable income, not a tax credit and not a true exemption; state taxes may still apply. The statutory parameters in Section 1 of the dataset are verified against IRS FS-2025-03. The dollar-savings figures in Sections 2 and 3 are clearly-labeled illustrative estimates: tax savings equal the deduction used times the filer's marginal tax rate, computed under a flat-rate simplification, and are not tax advice. A live No-Overtime-Tax calculator applies these exact statutory parameters. Columns (Section 1): parameter, value, source_note. (Section 2): filing_status, marginal_tax_rate, overtime_premium_earned_usd, deduction_capped_at_usd, deduction_used_usd, estimated_tax_savings_usd, magi_usd, eligible. (Section 3): marginal_bracket, full_cap_used_usd, estimated_tax_savings_usd. License: CC0 / public domain.