No Tax on Overtime

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

Tool	What it does
calculate_overtime_deduction	Deduction 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_deduction	Deduction for qualified tips after the $25,000 per-return cap and the MAGI phase-out. Limits self-employed tips to net income.
calculate_senior_deduction	Enhanced $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_savings	Combines the three deductions and runs taxable income through the IRS bracket tables for the year to estimate federal income tax saved.
explain_eligibility	Who 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:

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

Cursor

Add this to ~/.cursor/mcp.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:

{
  "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 install
npm run build
npm 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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The paid back-office collection (invoices, VAT, PDFs, spreadsheets) is at https://mcp.zovo.one