ISLA Accompting

💰 New Deductions for Tips & Overtime Pay (2025–2028)

Starting in 2025, two new deductions under the One Big Beautiful Bill (OBBB) may benefit employees and self-employed individuals who earn tips or overtime pay.

Here’s a quick breakdown:

💵 Qualified Tips Deduction (2025–2028)
✅ Applies to employees and self-employed individuals in occupations that customarily receive tips (as listed by the IRS before Dec. 31, 2024).
✅ Maximum annual deduction: $25,000.
✅ Must include your Social Security number and file jointly if married.
✅ Not available for some businesses.

⏰ Qualified Overtime Pay Deduction (2025–2028)
✅ Deduction for the overtime portion of “time-and-a-half” pay.
✅ Maximum annual deduction: $12,500 (or $25,000 for joint filers).
✅ Available to both itemizing and non-itemizing taxpayers.

📌 What this means for you:
If you regularly earn tips or overtime pay, these new deductions could reduce your taxable income — make sure you’re prepared to take advantage!

📞 Need guidance? Our team at ISLA Accompting is here to help you understand how these new rules affect your 2025 return.

🔗 Learn more: www.islaccounting.com



💰 Nuevas Deducciones para Propinas y Horas Extra (2025–2028)

A partir de 2025, dos nuevas deducciones bajo la Ley One Big Beautiful Bill (OBBB) pueden beneficiar a empleados y trabajadores por cuenta propia que reciban propinas o pago por horas extra.

💵 Deducción por Propinas Calificadas (2025–2028)
✅ Aplica a empleados y trabajadores en ocupaciones que reciben propinas regularmente (según la lista del IRS antes del 31 de diciembre de 2024).
✅ Deducción máxima anual: $25,000.
✅ Se reduce gradualmente para ingresos mayores de $150,000 ($300,000 en declaración conjunta).
✅ Debe incluir su número de Seguro Social y declarar conjuntamente si está casado.
✅ No disponible para negocios clasificados como SSTB.

⏰ Deducción por Pago de Horas Extra Calificadas (2025–2028)
✅ Permite deducir la parte del pago que excede la tarifa regular (“tiempo y medio”).
✅ Deducción máxima anual: $12,500 ($25,000 si es conjunta).
✅ Se reduce gradualmente para ingresos mayores de $150,000 ($300,000 en conjunta).
✅ Disponible tanto para quienes detallan deducciones como para quienes no.

📌 Qué significa para usted:
Si recibe propinas o paga de horas extra con frecuencia, estas deducciones pueden reducir su ingreso imponible. ¡Prepárese para aprovecharlas!

📞 ¿Necesita orientación? Nuestro equipo en ISLA Accounting está aquí para ayudarle a entender cómo estas reglas afectarán su declaración de 2025.

🔗 Más información: www.islaccounting.com

💸 New Tax on Certain Money Transfers Coming in 2026

Starting January 1, 2026, a new 1% federal excise tax may apply to certain international money transfers under the One Big Beautiful Bill (OBBB).

Here’s a quick breakdown for our community:

✅ Tax applies when sending cash, money orders, or similar instruments abroad.
✅ NO tax if you use a bank account, debit card, or credit card.
✅ Transfers sent through a Qualified Remittance Transfer Provider (QRTP) may also be exempt — these are providers who’ve entered a special agreement with the U.S. Treasury and verify the sender is a U.S. citizen or national.
✅ The sender is responsible for the tax, but the transfer company must collect and remit it to the IRS.

📌 What this means for you: If you regularly send money overseas, now is a great time to review your methods and plan ahead.

📞 Need guidance? Our team at ISL Accounting & Tax Service is here to help you understand how this change might impact you.

🔗 Learn more: www.islaccounting.com

⚠️ IRS Warning: Watch Out for Tax Credit Scams!

The IRS is warning taxpayers about fraudulent tax schemes spreading on social media. These scams encourage people to claim credits they don’t qualify for—like the Fuel Tax Credit or the Sick and Family Leave Credit.

🚫 Following this bad advice can lead to:

Denied refunds ❌
Delayed processing ⏳
$5,000+ in penalties 💸

🚩 Common Red Flags:

Posts claiming “everyone qualifies” for certain credits.
Promises of easy or fast refunds.
Instructions to file amended returns without eligibility.
Encouragement to ignore IRS letters.

👉 What to do if you’re targeted:

Don’t fall for it—check IRS.gov for accurate info.
If you filed incorrectly, amend your return with Form 1040-X.
Report suspected scams to [email protected]
Contact a trusted CPA firm (like us!) for guidance.

📌 Remember: If it sounds too good to be true, it probably is. Protect yourself, and always rely on official IRS resources or licensed professionals.