This bill introduces a new federal income tax deduction for certain overtime compensation received by individuals. Under this provision, taxpayers would be allowed to deduct an amount equal to up to 20 percent of their other wages from the same employer for the taxable year. The term "overtime compensation" is specifically defined as payments required under section 7 of the Fair Labor Standards Act of 1938. However, this deduction is subject to adjusted gross income limitations , disallowing it for married couples filing jointly with over $200,000 AGI, heads of household over $150,000 AGI, or other individuals over $100,000 AGI. The deduction is available to both itemizers and non-itemizers and is not treated as a miscellaneous itemized deduction. This tax relief provision is temporary, as no deduction will be allowed for amounts received after December 31, 2029 .