⏱️ Overtime Deduction
No state income tax — federal deduction is all that applies. Full savings.
💵 Tips Deduction
No state income tax — federal tips deduction is all that applies. Full savings.
No Tax on Overtime in Florida
Florida residents who earn overtime pay keep 100% of the federal No Tax on Overtime deduction. Since Florida has no state income tax, there is no state-level tax on overtime or tips to begin with. Your savings come entirely from the federal deduction.
No Tax on Tips in Florida
Tipped workers in Florida benefit from the full federal No Tax on Tips deduction with no state tax complication. If you work in one of the 68 IRS-approved tipped occupations, your savings are straightforward.
To qualify for the tips deduction, your occupation must appear on the IRS TTOC list of 68 approved tipped occupations. Common qualifying jobs include servers, bartenders, hair stylists, barbers, nail technicians, rideshare drivers, hotel staff, and casino dealers. Check your occupation →
TurboTax has updated their 2025 software to handle all OBBBA deductions — overtime, tips, and state-specific calculations.
File with TurboTax →Florida OBBBA — Frequently Asked Questions
Does Florida conform to the OBBBA No Tax on Overtime deduction?
Florida has no state income tax, so conformity is not relevant. Your savings come entirely from the federal deduction on your overtime premium.
How do I calculate my No Tax on Overtime savings as a Florida resident?
Use the OBBACalc overtime calculator. Enter your income, filing status, select Florida, and enter your overtime wages. The calculator applies the correct IRS formula, the $12,500/$25,000 cap, the $150,000 phase-out, and shows your exact Florida-specific savings.
Can I claim both the overtime and tips deduction as a Florida worker?
Yes — if you qualify for both, you can stack them on the same return. The overtime deduction (max $12,500 single) and tips deduction (max $25,000) are calculated separately, each with their own phase-out at $150,000 MAGI. Both are claimed on Schedule 1-A of Form 1040.
When is the deadline to claim these deductions in Florida?
The federal filing deadline is April 15, 2026 for tax year 2025. Florida state returns are typically due the same date. File on time to claim your OBBBA deductions — extensions give more time to file but not more time to pay any taxes owed.