DEDUCTION FOR OVERTIME INCOME (2025-2028)
01.Core Concepts
• Below-the-line deduction for up to $12,500 ($25,000 MFJ) of overtime compensation. • Available regardless of whether the taxpayer takes the standard deduction or itemizes deductions. • Deductible amount (after applying the $12,500 limit) reduced by $100 for each $1,000 by which MAGI exceeds $150,000 ($300,000 MFJ). • No deduction if MFS.