Summers Tax Service

12/28/2025

TIPS AND OVERTIME SUMMARIES PER THE IRS:

No Tax on Tips summary:

Under the One, Big, Beautiful Bill (PL119-21), workers may be eligible for new deductions for tax years 2025 through 2028 if they received qualified tips. For tipped workers, the maximum annual deduction is $25,000, which phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
An estimated 6 million workers report tipped wages.

No Tax on Overtime summary:

For tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay (generally, the “half” portion of “time-and-a-half” compensation) that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

Maximum annual deduction is $12,500 ($25,000 for joint filers).
Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
The deduction is available for both itemizing and non-itemizing taxpayers.

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10/15/2025

09/30/2025

Updated scam alert: Scammers are calling, mailing, and texting taxpayers about income tax refunds, including the inflation refund check.
The New York State Tax Department is not contacting taxpayers about the New York State inflation refund check. You do not need to provide them with additional information to receive a check. If you are contacted about the inflation refund check by someone supposedly from the Tax Department, report it.

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02/25/2023

Tip of the day.... You don't ask your plumber, your electrician, your doctor, your attorney, etc. to teach you what they know so you can do it yourself - respect your accountant's education and experience in the same manner, please. I realize that Intuit tells you that you can do it all by yourself with Quickbooks online and Turbo tax but they want to sell you something! (I copied this with permission from another tax professional)

12/23/2021

Please hang on to the IRS letter regarding the Advance Child Tax Credit as your tax preparer will need it.

IR-2021-255: IRS issues information letters to Advance Child Tax Credit recipients and recipients of the third round of Economic Impact Payments; taxpayers should hold onto letters to help the 2022 Filing Season experience Internal Revenue Service (IRS) sent this bulletin at 12/22/2021 02:05 PM EST....

10/20/2021

Thank you for all the years of entrusting your business to me. I am retired now and enjoying family and friends.

07/20/2021

Tax Tip 2021-104: A tip for teachers: Some educator expenses may be tax deductible Internal Revenue Service (IRS) sent this bulletin at 07/20/2021 09:30 AM EDT IRS Tax Tips July 20, 2021 Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Gu...

06/28/2021

If you wish to unenroll from the advance Child tax Credit payments or to register for them for non-filers, IRS has posted the page below to help.

Find details about the advance Child Tax Credit payments, including how to get them or stop getting them.

04/25/2021

https://news.yahoo.com/irs-holds-over-29-million-tax-returns-delaying-refunds-192532885.html?guccounter=1&guce_referrer=aHR0cHM6Ly9sLmZhY2Vib29rLmNvbS8&guce_referrer_sig=AQAAAFpsjj29vTAmeV4_dQbJfE904QtBV5E0FDELkvZolb_VN1VNii2Yp_yjWjXEu0vfxcyrpfem88afazl_afPNTQX5osmQBbJryC6GxgZ-KehPyO5RaGgZuLUEQwD5eLZ8A_lX4AzYOWB0AWhpn7BsQ6MTtLrCgfTqHyLIviEsDb1-

The Internal Revenue Service is holding 29 million returns for manual processing — delaying refunds for many — because of pandemic-related law changes, processing errors, and fraud detection.

04/01/2021

Beginning in May the IRS will be recalculating returns and automatically sending refunds for those qualified taxpayers who filed their returns and did not take the $10,200 unemployment deduction.

IR-2021-71, March 31, 2021 — To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue P...