Overtime Deduction Calculation & Tips for 2025-2028

Overtime Deduction Calculation & Tips for 2025-2028

This article will guide you on how to find overtime and tipped information on your pay statements.

  1. Pull up your pay statement from Vantage http://vantage.access.utah.gov/ :

    1. Click Pay Summary


    1. Click View Pay Slips


    1. Click the paperclip icon to view the relevant pay statement


  1. If you are a non-exempt employee with comp pay that accrues at 1.5 or excess pay, you can also deduct it using the same method below.
    1. If you are unsure if you are exempt or non-exempt, reach out to your agency's HR representative.
  2. Find overtime pay lines on your pay statements and divide by 3. 1/3 of the overtime is what is deductible on your tax return
    1. For tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay (generally, the “half” portion of “time-and-a-half” compensation) 
  3. To find your tipped income, refer to your pay statement and look for the Taxable Non-Cash Earnings > Tipped Income. The full amount is deductible up to $25,000


To confirm your eligibility and amounts, refer to the IRS guidance below or consult a tax professional.
  1. For more information, please reference the IRS Notice 2025-69
  2. https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation