Have others found the phase out is not working correctly in the online software for the OT premium deduction?

[MindyB]

I have tested the phase out and found it to be working properly.  The OT premium that you earned (not the maximum of $12,500 or $25,000 if married filing jointly) is reduced by $100 for every $1,000 you earn above $150,000 (or $300,000 if married filing jointly).

Example: if your overtime premium that you otherwise would have deducted was $200, and you earned $151,000 as a single, you could only deduct $100.

Here is some information you may find helpful:  No Tax on Overtime Explained: Qualified Overtime Deduction Rules for 2025

[mel-matt]

Thank you for the clear explanation. Turbo Tax AI said it was a reduction in the maximum allowable (i.e. reducing the $12,500 maximum by $100 for every $1,000 of MAGI exceeding $150,000), so I was confused.