The "Overtime Wages Tax Relief Act" introduces a new deduction for overtime compensation received by individuals. Taxpayers can deduct an amount up to $10,000 , or $20,000 for those filing a joint return , for the taxable year. This deduction begins to phase out for taxpayers with a modified adjusted gross income exceeding $100,000 ($200,000 for joint filers), reducing by $50 for every $1,000 over the threshold. For the purpose of this deduction, "overtime compensation" is defined as pay received at a rate of not less than one and a half times the regular rate, for work exceeding a maximum number of hours as required by the Fair Labor Standards Act of 1938 or specific collective bargaining or employer-employee agreements. This deduction is available to both itemizers and non-itemizers, and it is not treated as a miscellaneous itemized deduction or subject to overall limitations on itemized deductions. The Secretary of the Treasury is directed to modify withholding procedures, and the amendments will apply to taxable years beginning after December 31, 2025.