{"identifier":"/us/usc/t26/s225","title":26,"num":"\u00a7\u202f225.","heading":"Qualified overtime compensation","text":"\u00a7\u202f225.\nQualified overtime compensation\n(a)\nIn general\nThere shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year and included on statements furnished to the individual pursuant to section 6041(d)(4) or 6051(a)(19).\n(b)\nLimitation\n(1)\nIn general\nThe amount allowed as a deduction under this section for any taxable year shall not exceed $12,500 ($25,000 in the case of a joint return).\n(2)\nLimitation based on adjusted gross income\n(A)\nIn general\nThe amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer\u2019s modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return).\n(B)\nModified adjusted gross income\nFor purposes of this paragraph, the term \u201cmodified adjusted gross income\u201d means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.\n(c)\nQualified overtime compensation\n(1)\nIn general\nFor purposes of this section, the term \u201cqualified overtime compensation\u201d means overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed.\n(2)\nExclusions\nSuch term shall not include any qualified tip (as defined in section 224(d)).\n(d)\nSocial security number required\n(1)\nIn general\nNo deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual\u2019s social security number.\n(2)\nSocial security number defined\nFor purposes of paragraph (1), the term \u201csocial security number\u201d shall have the meaning given such term in section 24(h)(7).\n(e)\nMarried individuals\nIf the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer\u2019s spouse file a joint return for the taxable year.\n(f)\nRegulations\nThe Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent abuse of the deduction allowed by this section.\n(g)\nTermination\nNo deduction shall be allowed under this section for any taxable year beginning after\nDecember 31, 2028","url":"https://projectusc.org/usc/t26/s225.html","content":[{"t":"sec","id":"/us/usc/t26/s225","children":[{"t":"num","text":"\u00a7\u202f225."},{"t":"heading","text":"Qualified overtime compensation"},{"t":"subsec","id":"/us/usc/t26/s225/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"There shall be allowed as a deduction an amount equal to the qualified overtime compensation received during the taxable year and included on statements furnished to the individual pursuant to section 6041(d)(4) or 6051(a)(19).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s225/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Limitation"},{"t":"para","id":"/us/usc/t26/s225/b/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The amount allowed as a deduction under this section for any taxable year shall not exceed $12,500 ($25,000 in the case of a joint return).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s225/b/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Limitation based on adjusted gross income"},{"t":"subpara","id":"/us/usc/t26/s225/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The amount allowable as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $100 for each $1,000 by which the taxpayer\u2019s modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t26/s225/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Modified adjusted gross income"},{"t":"content","children":[{"t":"p","text":"For purposes of this paragraph, the term \u201cmodified adjusted gross income\u201d means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s225/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Qualified overtime compensation"},{"t":"para","id":"/us/usc/t26/s225/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, the term \u201cqualified overtime compensation\u201d means overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s225/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Exclusions"},{"t":"content","children":[{"t":"p","text":"Such term shall not include any qualified tip (as defined in section 224(d)).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s225/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Social security number required"},{"t":"para","id":"/us/usc/t26/s225/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual\u2019s social security number.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s225/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Social security number defined"},{"t":"content","children":[{"t":"p","text":"For purposes of paragraph (1), the term \u201csocial security number\u201d shall have the meaning given such term in section 24(h)(7).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s225/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Married individuals"},{"t":"content","children":[{"t":"p","text":"If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer\u2019s spouse file a joint return for the taxable year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s225/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Regulations"},{"t":"content","children":[{"t":"p","text":"The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent abuse of the deduction allowed by this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s225/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Termination"},{"t":"content","children":[{"t":"p","text":"No deduction shall be allowed under this section for any taxable year beginning after ","children":[{"t":"text","text":"December 31, 2028","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}