Crate obbba_overtime 

obbba-overtime

Estimate the One Big Beautiful Bill Act (OBBBA) above-the-line deduction for qualified overtime compensation — the so-called “no tax on overtime” — including its Modified Adjusted Gross Income (MAGI) phase-out.

Important: these are estimates pending final IRS guidance

OBBBA created a temporary (tax years 2025–2028) above-the-line deduction for FLSA-qualified overtime pay. The headline parameters below are widely reported from the statute and early IRS guidance, but the IRS was still issuing implementation details (e.g., exactly how MAGI is computed for this purpose, treatment of bonuses, and the precise phase-out slope) through late 2025 and into 2026. Every figure here is an estimate / model input — not a guarantee of any taxpayer’s actual deduction. Always confirm against the final IRS guidance and a qualified tax professional before relying on a number.

The figures this crate uses by default:

Parameter	Single / HoH	Married Filing Jointly
Maximum deduction (cap)	$12,500	$25,000
MAGI phase-out begins	$150,000	$300,000
Phase-out reduction	$1 of deduction lost per $10 of MAGI over the threshold

Quick example

use obbba_overtime::{deduction, FilingStatus};

let d = deduction(8_000.0, 90_000.0, FilingStatus::Single);
// $8,000 of qualified OT, MAGI well under the $150k threshold → full amount
assert!((d - 8_000.0).abs() < 1e-6);

let capped = deduction(40_000.0, 90_000.0, FilingStatus::Single);
// OT above the $12,500 single cap is not deductible
assert!((capped - 12_500.0).abs() < 1e-6);

Structs

Params

Filing-status-dependent deduction parameters.

Enums

FilingStatus

Filing status, used to select default Params.

Functions

deduction

Estimated overtime deduction for a taxpayer.

deduction_with

Same as deduction but with explicit Params (override the defaults).

effective_cap

The maximum deduction available to a taxpayer with the given MAGI, before considering how much overtime they actually earned (i.e., the lesser of the statutory cap and what the phase-out leaves available).

tax_savings

Estimated federal income-tax savings from the overtime deduction, given a marginal tax rate (e.g., 0.22 for the 22% bracket).