OBBBA allows for the deduction of overtime pay required by the Fair Labor Standards Act - which is 1.5 times pay over 40 hours. Since your employer pays more than that, the excess is not deductible under OBBBA.
The regular pay portion isn't deductible for overtime but the 0.5 portion is deductible due to the Fair Labor Standards Act provided you meet the other requirements. A single person can deduct up to $12,500 for income up to $150,000. Married couples have $25,000 deduction on income up to $300,000. There is a phase out range that reduces the deductions by $100 for every $1,000 over the income limit.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
