This is a quote of the actual language in the BBB. The allowable amount for married filed jointly is $25,000 under (b) part (1). Then it follows to say the allowable amount as a deduction shall be reduced by $100 for every $1,000 over the excess of the MAGI cap which for married filed jointly is $300,000 so the reduction is from the allowable amount not from the amount claimed in the deduction.
139 STAT. 174 SEC. 70202. NO TAX ON OVERTIME.(a) Deduction Allowed.—Part VII of subchapter B of chapter 1, as amended by the preceding provisions of this Act, is amended by redesignating section 225 as section 226 and by inserting after section 224 the following new section: “SEC. 225.
26 USC 225.
QUALIFIED OVERTIME COMPENSATION.“(a)
Statements.
In General.—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).“(b) Limitation.—“(1) In general.—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).“(2) Limitation based on adjusted gross income.—“(A) In general.—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’s modified adjusted gross income exceeds $150,000 ($300,000 in the case of a joint return).“(B)
Definition.
Modified adjusted gross income.—For purposes of this paragraph, the term ‘modified adjusted gross income’ 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.
