No Tax on Overtime

io.github.theluckystrikePublished by GitHub account theluckystrikev1.0.0Updated Oct 30, 2026

No tax on overtime, tips and senior deductions for 2025-2028 (OBBBA), with IRS caps and phase-outs.

VerifiedStreamable HTTPWeb executableFinanceData & Analytics

Overview

AI-generated overview

Calculates 2025-2028 US federal overtime, tips and senior deductions under the One Big Beautiful Bill Act, with IRS caps, phase-outs and bracket estimates.

What you can do
  • Compute the qualified overtime deduction from a W-2 box 12 code TT amount, hourly rate plus overtime hours, or total overtime pay, keeping only the FLSA half-time premium
  • Compute the qualified tips deduction with the per-return cap and MAGI phase-out, limiting self-employed tips to net income
  • Compute the enhanced senior deduction per person age 65 or older, accepting birth dates
  • Estimate combined federal income tax savings by applying the three deductions and the year's IRS bracket tables
  • Explain eligibility: covered years, excluded filing status, SSN rule, FLSA rules, W-2 and 1099 boxes and Schedule 1-A lines
When to use it
Useful when someone wants to estimate how much the 2025-2028 overtime, tips or senior deductions could reduce their federal income tax, or needs the eligibility rules and reporting lines explained. It suits quick what-if questions about caps, phase-outs and combined savings.
Requirements
A remote streamable HTTP endpoint that needs no sign-in or token; add the URL as a custom connector or MCP client entry. A local npx version is also documented and needs Node 20 or newer.
Before you install
Results are estimates, not tax advice, and cover federal income tax only, excluding Social Security, Medicare and state taxes. 2027 and 2028 brackets are not yet published, so those years reuse 2026 tables. It does not decide FLSA eligibility or tipped-occupation status. Inputs such as income, tips and birth dates are sent to the hosted endpoint.

Installation

In SourceWeft

  1. Open No Tax on Overtime in the dashboard and add it to a workspace.
  2. Enable the server for the chats that should use its tools.

Web executable via Streamable HTTP. Remote servers run from the web runtime once configured in a workspace.

Use with an agent

Paste this prompt into Claude Code, Codex, Cursor or another agent — or into SourceWeft chat. The agent reads this server's install guide, shows you its publisher, endpoint and sign-in, and adds it to your client once you agree. Keys never go into a command.

Read https://sourceweft.com/mcp/io.github.theluckystrike%2Fno-tax-on-overtime-mcp/install.md and connect the MCP server it describes to my client. Before changing any config, show me its publisher, endpoint and sign-in method and wait for my OK. Never put an API key in a command or in a file I would commit; ask me where it should come from.

Read the install guide the agent follows

Other MCP clients

Add this to your client's mcpServers config.

{
  "mcpServers": {
    "no-tax-on-overtime": {
      "type": "http",
      "url": "https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp"
    }
  }
}

README

no-tax-on-overtime-mcp

An MCP server that calculates the 2025-2028 federal no tax on overtime, no tax on tips and senior deductions from the One Big Beautiful Bill Act (P.L. 119-21), using the IRS caps, phase-outs and bracket tables.

Hosted endpoint, no sign-in and no token:

https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp

Tools

ToolWhat it does
calculate_overtime_deductionDeduction for qualified overtime after the $12,500 cap ($25,000 joint) and the MAGI phase-out. Takes the W-2 box 12 code TT amount, or hourly rate + overtime hours + multiplier, or total overtime pay, and keeps only the FLSA half-time premium.
calculate_tips_deductionDeduction for qualified tips after the $25,000 per-return cap and the MAGI phase-out. Limits self-employed tips to net income.
calculate_senior_deductionEnhanced $6,000 deduction per person age 65 or older, reduced by 6% of MAGI over $75,000 ($150,000 joint). Accepts birth dates.
estimate_tax_savingsCombines the three deductions and runs taxable income through the IRS bracket tables for the year to estimate federal income tax saved.
explain_eligibilityWho qualifies, the excluded filing status, the SSN rule, FLSA exemptions, the W-2 and 1099 boxes, Schedule 1-A lines, and the years covered.

Every result has structured JSON, a plain-English summary, as_of, source (the irs.gov document) and more (a calculator page on noovertimetax.com).

What it knows that your model does not

  • These deductions started in tax year 2025, after most models were trained. The law was signed on July 4, 2025.
  • The phase-out is $100 for each full $1,000 of MAGI over the threshold, rounded down, as Schedule 1-A lines 16-21 do it. It is not a smooth percentage.
  • Only the FLSA premium qualifies. Ten double-time hours at $20 give $100 of qualified overtime, not $200 (IRS FS-2026-13 A16).
  • From 2026 you may not use more than the amount in Form W-2 box 12 code TT. If your employer leaves it out, you need a Form W-2c (FS-2026-13, August 2026).
  • The tips cap is $25,000 per return even on a joint return. The overtime cap doubles for joint returns. The senior reduction applies to each spouse separately.
  • Married filing separately gets nothing from any of the three.
  • 2025 and 2026 brackets from Rev. Proc. 2024-40 and Rev. Proc. 2025-32, including the OBBBA standard deduction amounts.

Install

Claude.ai custom connector or ChatGPT developer mode

Add a custom connector and paste the URL. No token is needed.

https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp

Claude Code

claude mcp add --transport http no-tax-on-overtime https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp

Or run it locally:

claude mcp add no-tax-on-overtime -- npx -y no-tax-on-overtime-mcp

Claude Desktop

Add this to claude_desktop_config.json:

json
{  "mcpServers": {    "no-tax-on-overtime": {      "command": "npx",      "args": ["-y", "no-tax-on-overtime-mcp"]    }  }}

Cursor

Add this to ~/.cursor/mcp.json:

json
{  "mcpServers": {    "no-tax-on-overtime": {      "url": "https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp"    }  }}

VS Code

Add this to .vscode/mcp.json:

json
{  "servers": {    "no-tax-on-overtime": {      "type": "http",      "url": "https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp"    }  }}

Node 20 or newer is needed for the local npx version.

Example prompts

  • "I make $28 an hour and worked 300 overtime hours at time-and-a-half in 2026. I file single and my MAGI is $72,000. How much can I deduct?"
  • "My employer pays double time. Does all of it count for the no tax on overtime deduction?"
  • "We file jointly, both of us are 67, and our MAGI is $180,000. What is our senior deduction for 2025?"
  • "I'm a bartender with $31,000 in tips and $95,000 MAGI. What does the tips deduction save me in federal tax?"
  • "My W-2 for 2026 has no box 12 code TT. Can I still claim the overtime deduction?"

Data sources

All numbers come from irs.gov documents fetched on 2026-10-30: Schedule 1-A (2025 and the 2026 draft), the 2025 Form 1040 instructions, fact sheets FS-2025-03 and FS-2026-13, Rev. Proc. 2024-40 and Rev. Proc. 2025-32. See DATA_SOURCES.md for each item and URL.

Limitations

  • Results are estimates, not tax advice.
  • Federal income tax only. Social security, Medicare and state taxes are not included.
  • The IRS has not yet published 2027 or 2028 brackets. For those years the savings estimate uses the 2026 tables and says so.
  • If you leave out taxable income, the savings tool uses MAGI minus the basic standard deduction. It ignores the extra standard deduction for age 65+, itemized deductions and credits.
  • It does not decide whether you are FLSA overtime-eligible or whether your occupation is on the tipped list. explain_eligibility lists the rules.
  • The car loan interest deduction is not covered.

More

Calculators and guides for people: noovertimetax.com.

Part of the Zovo MCP collection: https://mcp.zovo.one

Development

npm installnpm run buildnpm test

src/core.ts holds all the rules and has no I/O. src/stdio.ts is the local entry and src/worker.ts is the Cloudflare Worker entry. Both use the same tool registry in src/tools.ts.

License

MIT

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Source: README.md at commit d367cb6

Tools

5

calculate_overtime_deduction

No Tax on Overtime deduction

Calculates the 2025-2028 federal deduction for qualified overtime pay under the One Big Beautiful Bill Act (P.L. 119-21, IRC 225) as IRS Schedule 1-A Part III does: the $12,500 cap ($25,000 joint), then $100 off per full $1,000 of MAGI over $150,000 ($300,000 joint). Only the FLSA half-time premium qualifies, so it converts hourly rate, overtime hours and multiplier (or total overtime pay) to the qualified amount; double time does not double it. Married filing separately gets $0. Figures copied from irs.gov in Oct 2026.

Parametersmagirequiredtax_yearrequiredmultiplierhourly_ratefiling_statusrequiredovertime_hourstotal_overtime_payqualified_overtime_premium

calculate_tips_deduction

No Tax on Tips deduction

Calculates the 2025-2028 federal deduction for qualified tips under the One Big Beautiful Bill Act (P.L. 119-21, IRC 224) as IRS Schedule 1-A Part II does: a $25,000 cap per return for every filing status, then $100 off per full $1,000 of MAGI over $150,000 ($300,000 joint). Self-employed tips count only up to that business's net income. Married filing separately gets $0. Figures copied from irs.gov in Oct 2026.

Parametersmagirequiredtax_yearrequiredemployee_tipsfiling_statusrequiredself_employed_tipsself_employed_net_income

calculate_senior_deduction

Enhanced deduction for seniors (65+)

Calculates the 2025-2028 enhanced deduction for seniors under the One Big Beautiful Bill Act (P.L. 119-21) as IRS Schedule 1-A Part V does: $6,000 per person age 65 or older by Dec 31, each reduced by 6% of MAGI over $75,000 ($150,000 joint). On a joint return the reduction applies to each spouse's $6,000. Married filing separately gets $0. Figures copied from irs.gov in Oct 2026.

Parametersmagirequiredtax_yearrequiredfiling_statusrequiredspouse_birth_datetaxpayer_birth_datespouse_age_65_or_oldertaxpayer_age_65_or_older

estimate_tax_savings

Estimate federal tax saved

Estimates the federal income tax saved in 2025-2028 by the One Big Beautiful Bill Act overtime, tips and senior deductions combined. It applies each deduction's cap and phase-out, then runs taxable income through the IRS bracket tables for that year (Rev. Proc. 2024-40 for 2025, Rev. Proc. 2025-32 for 2026) before and after. 2027-2028 brackets are not published yet, so it uses 2026 and says so. Federal income tax only.

Parametersmagirequiredtax_yearrequiredhourly_ratefiling_statusrequiredovertime_hoursqualified_tipsovertime_multiplierspouse_age_65_or_oldertaxpayer_age_65_or_olderqualified_overtime_premiumtaxable_income_before_new_deductions

explain_eligibility

Who qualifies, and how it is reported

Explains who can claim the 2025-2028 One Big Beautiful Bill Act deductions for overtime, tips and seniors: years covered, excluded filing status (married filing separately), the valid-SSN rule, FLSA overtime eligibility, and exactly where the amounts are reported (Form W-2 box 12 codes TT and TP, Form 1099-NEC/1099-MISC/1099-K boxes, Schedule 1-A lines), including the 2026 change that only W-2 box 12 code TT amounts count. Taken from IRS FAQs and forms fetched Oct 2026.

Parameterstopictax_year

Version history

1
  1. v1.0.0LatestOct 30, 2026

Score

100% of the applicable checks met

How complete this listing is, computed from the registry entry, the endpoint and public sources. Not a rating of the server and not a statement that it is safe or working today: reachability is a dated check, and no installs or reviews go into the score.

  • Reached in the last 30 daysRequired25 pts
  • Auth declaredRequired10 pts
  • Tools listedRequired15 pts
  • DescriptionRequired15 pts
  • Logo10 pts
  • Documentation15 pts
  • License10 pts