agreements, or is only required by state or local laws is not eligible for the tax deduction. Overtime pay continues to be subject to Social Security tax and Medicare tax.

The deduction begins to phase out for individuals whose modified adjusted gross income is more than $150,000 (or $300,000 if married filing jointly), and is eliminated at $400,000 (or $550,000 if married filing jointly).

Individuals may take a tax deduction for the amount of qualified overtime compensation

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