Illinois Overtime Tax Deduction Calculator
Hourly workers in Illinois.
The short answer: Run the pre-loaded scenario below: deduction $3,000, roughly $360 back in federal income tax at a 12% rate — $14 per biweekly paycheck. The math updates as you edit.
Regular rate (not OT rate)
Hours worked beyond 40/week
Modified Adjusted Gross Income
Overtime Premium Deduction
$3,000
✅ You qualify for the full deduction
⚠️ This calculator provides estimates for informational and educational purposes only. It is not tax advice. Results are based on the One Big Beautiful Bill Act (OBBBA) and IRS Schedule 1-A. Consult a qualified tax professional for your specific situation.
Illinois Schedules and the 40-Hour Line
Illinois follows the FLSA with one famous quirk: the day-of-rest rule.
- • IL OT: 1.5× after 40 hours/week (FLSA-aligned)
- • Illinois' day-of-rest law entitles most workers to a day off per week; premiums for waived rest days are not the OBBBA base
- • Chicago logistics, food processing, and manufacturing drive OT
Worked Example
A single Illinois warehouse worker at $24/hour with 250 OT hours — the exact numbers are editable.
- • Premium portion: $24 ÷ 2 = $12.00/hour on OT hours
- • Deduction: $3,000 (watch the cap and MAGI phase-out as you raise the inputs)
- • Federal income tax savings: $360 at the 12% marginal rate
Keep Reading
Frequently Asked Questions
Does the Illinois day-of-rest premium count for the deduction?
No — only overtime premium for hours beyond 40/week is the qualified deduction base.
Chicago-area distribution work — standard rules?
Yes — 1.5× past 40/week qualifies.
Is the deduction on top of the standard deduction?
Yes. The overtime premium deduction is an above-the-line style deduction under the OBBBA rules for 2025-2028; it is not an either/or choice against your standard deduction.