Overtime Wages Tax Relief Act: Allows deduction for overtime compensation up to $10,000 annually.
The Overtime Wages Tax Relief Act amends the Internal Revenue Code to allow a deduction for overtime compensation. This deduction is limited to $10,000 per year for individual filers and $20,000 for joint filers. Overtime compensation is defined as pay at a rate of at least 1.5 times the regular rate for work exceeding the maximum hours specified under the Fair Labor Standards Act or a collective bargaining agreement. The deduction is reduced for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).
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- Legal Framework
- Critical Issues
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