26 U.S.C. § 225 — Qualified overtime compensation

(a) In general. You can deduct the "qualified overtime compensation" you got during the year, as long as it is shown on a statement given to you under section 6041(d)(4) or 6051(a)(19). (b) Limitation. (1) In general. Your deduction under this section cannot be more than $12,500 for the year - or $25,000 if you file a joint return. (2) Limitation based on adjusted gross income. (A) In general. After applying that cap, your deduction shrinks by $100 for every $1,000 your "modified adjusted gross income" is above $150,000 ($300,000 for a joint return) - but never below zero. (B) Modified adjusted gross income. This means your adjusted gross income for the year, plus any income excluded under section 911, 931, or 933. (c) Qualified overtime compensation. (1) In general. This means overtime pay you got under section 7 of the Fair Labor Standards Act of 1938, specifically the part that is above your regular hourly rate (as that section defines "regular rate"). (2) Exclusions. This does not include any "qualified tip" as defined in section 224(d). (d) Social security number required. (1) In general. You cannot take this deduction unless you put your Social Security number on your tax return. (2) Social security number defined. This has the same meaning as in section 24(h)(7). (e) Married individuals. If you are married, you can only take this deduction if you and your spouse file a joint return. (f) Regulations. The Secretary must issue regulations or guidance needed to carry out this section, including guidance to prevent abuse of the deduction. (g) Termination. This deduction is not available for any tax year beginning after December 31, 2028.