Articles from October 2024

What is the Widow’s Penalty?

Losing a spouse is an emotionally overwhelming experience, and unfortunately, for many widows, the challenges extend beyond the realm of grief. The “widow’s penalty” refers to the financial disadvantages that widows often face after the death of their partners. This penalty manifests in various forms, from reduced Social Security benefits to inflated Required Minimum Distributions […]

Are Political Donations Tax Deductible? 

Political donations are a vital part of democratic systems, empowering individuals to support their preferred candidates, parties, and causes. As Election Day approaches, people often wonder whether their contributions to political campaigns, committees, or candidates can be deducted on their tax returns. This question arises frequently, especially in the context of other charitable donations, which […]

How Does Self-Employment Tax Work? 

If you’re self-employed, you likely know that managing your taxes can feel more complicated than simply having an employer deduct them from your paycheck. One of the most critical aspects of your tax responsibility is self-employment tax, which covers Social Security and Medicare contributions. In this guide, we’ll break down what self-employment tax is, how […]

How to Stop an IRS Levy 

An IRS levy is one of the most severe collection actions the IRS can take against a taxpayer who owes back taxes. Unlike a lien, which is a legal claim against your property, a levy actually allows the IRS to seize your assets to satisfy your tax debt. These can include wages, bank accounts, and […]

Will Hiring Optima Tax Relief Affect Your Credit Score?

Today, Optima Tax Relief Lead Tax Attorney, Phil, answers a burning question: “Will hiring Optima Tax Relief affect your credit score?”  The short answer is no. Hiring Optima Tax Relief does not directly affect your credit score. However, there are a few ways the process could impact your credit indirectly.   If you don’t pay your […]