Internal Revenue Code · 26 U.S.C.
§ 225. Qualified overtime compensation
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 225
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- July 4, 2025 by Pub. L. 119–21
- Length
- 7 subsections · 413 words · about 2 min to read
- Defines
- 3 terms
- Cross-references
- cites 5; cited by 4 Code sections and 0 other regulations
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).
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).
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.
For purposes of this section, the term “qualified overtime compensation” means overtime compensation paid to an individual required under section 7 of the Fair Labor Standards Act of 1938 that is in excess of the regular rate (as used in such section) at which such individual is employed.
No deduction shall be allowed under this section unless the taxpayer includes on the return of tax for the taxable year such individual’s social security number.
For purposes of paragraph (1), the term “social security number” shall have the meaning given such term in section 24(h)(7).
If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.
The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance to prevent abuse of the deduction allowed by this section.
No deduction shall be allowed under this section for any taxable year beginning after December 31, 2028.
(Added Pub. L. 119–21, title VII, § 70202(a), July 4, 2025, 139 Stat. 174.)
Terms defined here
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Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 5 other sections
- § 6041(d)(4) Information at source
- § 911 Citizens or residents of the United States living abroad
- § 224(d) Qualified tips
- § 24(h)(7) Child tax credit
- § 7703 Determination of marital status
Cited by 4 Code sections
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 119–21
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter B Computation of Taxable Income
- Part VII ADDITIONAL ITEMIZED DEDUCTIONS FOR INDIVIDUALS
Nearby sections
- § 221 Interest on education loans
- § 222 Repealed
- § 223 Health savings accounts
- § 224 Qualified tips
- § 225 Qualified overtime compensation
- § 226 Cross reference
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
References in Text
Section 7 of the Fair Labor Standards Act of 1938, referred to in subsec. (c)(1), is classified to section 207 of Title 29, Labor.
Prior Provisions
A prior section 225 was renumbered section 226 of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to taxable years beginning after Dec. 31, 2024, see section 70202(g) of Pub. L. 119–21, set out as an Effective Date of 2025 Amendment note under section 63 of this title.