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Can Claude calculate the no tax on overtime deduction?

Only if its training includes the July 2025 law, and many Claude versions were trained before it or know it only in outline. The deduction has a $12,500 cap ($25,000 joint), a MAGI phase-out from $150,000 and a rule that only the half-time premium counts, which is easy to get wrong in a long answer. Connect the free No Tax on Overtime server and Claude works out the qualified overtime, the cap and the phase-out the way Schedule 1-A does, for 2025 to 2028.

Connect free, no token No tax on overtime MCP server

What Claude does alone, and what needs the server

Claude on its own

  • Explains in general terms what the overtime deduction is.
  • Does simple sums when you give it the qualified amount.

With the No Tax on Overtime server

  • The P.L. 119-21 rules: caps, MAGI phase-outs and the FLSA premium rule.
  • Tips and senior deductions with the same rules.
  • The 2025 and 2026 IRS brackets to estimate the tax you save.

A real call to the live server

We sent this to the hosted server on 2026-11-03. The answer below is the server's own text, not a mock-up. Live values will differ when you ask.

You ask

I am single, MAGI $68,000. I worked 300 overtime hours in 2025 at $24 an hour, time and a half. What is my overtime deduction?

Tool call

calculate_overtime_deduction {"filing_status":"single","magi":68000,"tax_year":2025,"hourly_rate":24,"overtime_hours":300,"multiplier":1.5}

Server answer

Qualified overtime premium $3,600. After the $12,500 cap: $3,600. MAGI $68,000 is not above the $150,000 threshold, so there is no phase-out. Deduction for 2025: $3,600. Only the FLSA premium (the "half" in time-and-a-half) qualifies, not the straight-time part or any extra premium.

Connect it in 1 minute

One URL, no token, no account. In Claude.ai or Claude Desktop open Settings, then Connectors, then Add custom connector, and paste the URL.

Connector URL

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

Cursor (~/.cursor/mcp.json)

{
  "mcpServers": {
    "no-tax-on-overtime": {
      "url": "https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp"
    }
  }
}

VS Code (.vscode/mcp.json)

{
  "servers": {
    "no-tax-on-overtime": {
      "type": "http",
      "url": "https://no-tax-on-overtime-mcp.lipmichal.workers.dev/mcp"
    }
  }
}

All 5 tools, sources and more prompts: No tax on overtime MCP server · NoOvertimeTax

Questions

Can Claude calculate the no tax on overtime deduction?
Only if its training includes the July 2025 law, and many Claude versions were trained before it or know it only in outline. The deduction has a $12,500 cap ($25,000 joint), a MAGI phase-out from $150,000 and a rule that only the half-time premium counts, which is easy to get wrong in a long answer. Connect the free No Tax on Overtime server and Claude works out the qualified overtime, the cap and the phase-out the way Schedule 1-A does, for 2025 to 2028.
Does the whole overtime check count?
No. Only the premium part counts, the extra half in time and a half. In the example, $10,800 of overtime pay gives a $3,600 deduction.
Does it lower Social Security and Medicare tax?
No. It lowers federal income tax only. Payroll taxes still apply to overtime pay.
Is the server free?
Yes. The No Tax on Overtime server is free at its hosted URL with no token, key or account. The source is open on GitHub.

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