The Overtime Deduction Phase-out: $100 per Full $1,000 Over $150,000

Schedule 1-A line 19 divides the excess by $1,000 and rounds down, so $150,999 of MAGI costs nothing and $160,500 costs $1,000 (Schedule 1-A). Married filing separately gets no deduction; joint filers use $300,000 and a $25,000 cap.

What counts as MAGI

AGI (Form 1040 line 11b) plus any excluded foreign earned income or Puerto Rico income. Your overtime is already in it.

Last reviewed 2026-10-29. General information, not tax advice. Your W-2 and a tax professional come first.