How this estimator works
This page doesn’t compute anything new — it runs the same deduction rules as the individual calculators for tips, overtime, the senior deduction, car loan interest, and SALT, then feeds the total through the federal tax bracket engine twice: once with just your standard or itemized deduction, and once with your selected OBBBA deductions added on top. The difference is your estimated tax savings.
The formula
MAGI = grossIncome (fixed — does not change based on which deductions you enable) totalAdditionalDeductions = tips + overtime + senior + carLoanInterest (each from its own sourced rule) saltDeduction = only counted if you itemize baselineTaxableIncome = max(0, grossIncome − standardOrItemizedDeduction) withDeductionsTaxableIncome = max(0, baselineTaxableIncome − totalAdditionalDeductions) taxSaved = tax(baselineTaxableIncome) − tax(withDeductionsTaxableIncome)
Worked example
A single filer has $75,000 of gross income ($60,000 in wages, $15,000 in qualified tips), takes the standard deduction, and claims only the tips deduction.
- Baseline taxable income: $75,000 − $16,100 standard deduction = $58,900.
- Tips deduction: $15,000 (under both the cap and the MAGI phase-out threshold).
- Taxable income with the deduction: $58,900 − $15,000 = $43,900.
- Tax saved: tax($58,900) − tax($43,900).
Frequently asked questions (FAQ)
Which OBBBA deductions can I stack?
Tips, overtime, the senior deduction, and car loan interest all stack together as "additional deductions" regardless of whether you itemize. SALT is different — it only helps if you itemize, since it's an itemized deduction, not an additional one.
Do these expire?
Tips, overtime, the senior deduction, and car loan interest all run through tax year 2028 under current law. SALT's higher cap and phase-down schedule run through 2029, reverting to a flat $10,000 cap in 2030.
Do these reduce FICA/payroll tax?
No. All of these are federal income tax deductions only. Social Security and Medicare taxes still apply to your full wages, tips, and overtime pay regardless of these deductions.
Why is my savings less than the deduction?
A deduction reduces your taxable income, not your tax bill directly. Your actual savings is roughly the deduction amount times your marginal tax rate — so a $10,000 deduction at a 22% marginal rate saves about $2,200, not $10,000.
Sources
Every number here comes from the calculators it composes — see their individual pages for full citations: no-tax-on-tips, no-tax-on-overtime, the senior deduction, car loan interest, SALT, and the federal income tax bracket engine.