2026 · from a stub you already have
Tips & overtime deduction projector
The tips and overtime figures that will show up in Box 12 codes TP and TT next January are already on your pay stub, as year-to-date totals. Enter them and see the Schedule 1-A deduction you are on track for — while there is still time in the year to change it.
Runs in your browser. Estimates only — not tax advice.
Off the stub
Usually printed on the stub as the period number. 16 of 26 used.
Voluntary tips only — not automatic gratuities or service charges.
At time-and-a-half, one third of the overtime line is the premium and two thirds is straight-time pay.
Your return
A spouse's wages, a second job, self-employment income.
On track for December
Year-to-date figures multiplied by 1.63× to fill out the remaining 10 pay periods.
Projected wages
$71,500
Projected tips (Box 12 TP)
$20,800
Projected OT premium (Box 12 TT)
$2,275
| Schedule 1-A | Projected | After cap | Phaseout | Deduction |
|---|---|---|---|---|
| Qualified tips (Part II) | $20,800 | $20,800 | — | $20,800 |
| Qualified overtime (Part III) | $2,275 | $2,275 | — | $2,275 |
Deduction on track
$23,075
Worth about
$2,769
What you can still change
- 10 pay periods left in the year. This projection assumes they look like the 16 already banked.
Questions people ask about this
Why not just wait for the W-2?
Because by the time the W-2 arrives in January the year is over and nothing can be changed. The same figures are on every pay stub as year-to-date totals, so a projection in October still leaves time to act on it — shifting hours, timing a bonus, or making a pre-tax contribution that pulls modified AGI back under a phaseout threshold.
Where do I find qualified overtime on a pay stub?
Look for an overtime or OT line with its own YTD column. The deductible figure is only the FLSA-required premium — the extra half in time-and-a-half — not the full overtime amount. If your stub shows total overtime pay at 1.5x, roughly one third of it is the premium. Some payroll systems now break the premium out on its own line.
Where are tips on a pay stub?
Tips usually appear as a separate earnings line — cash tips, charged tips, or reported tips — with a YTD column. Only voluntary tips count. If your employer adds an automatic gratuity or service charge to large parties, that part is wages, not tips, and it does not qualify.
How accurate is a run-rate projection?
It is a straight-line estimate: year-to-date divided by pay periods completed, multiplied by pay periods in the year. It will be off if your hours are seasonal, if you started mid-year, or if a large bonus lands in December. Use it to see which side of a threshold you are on, not as a filing figure.
Does my occupation matter?
For tips, yes. Only occupations on the closed Treasury Tipped Occupation Code list produce qualified tips, and the three-digit code appears in Box 14b of the 2026 W-2. Overtime has no occupation list — any FLSA-required premium counts.
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