The IRS has announced its annual inflation adjustments for 2025, impacting a wide range of tax provisions. These adjustments are designed to prevent taxpayers from being pushed into higher tax brackets due to inflation. We’ve discussed the updated tax brackets and standard deductions in a previous post. Here’s a breakdown of the other most significant […]
Article from December 2024
What is the Foreign Earned Income Exclusion?
The Foreign Earned Income Exclusion (FEIE) is a provision in the U.S. tax code that allows eligible taxpayers to exclude a portion of their income earned abroad from U.S. taxation. This exclusion is particularly beneficial for Americans working and living overseas, as it helps reduce the potential burden of double taxation. Below, we explore how […]
Ask Phil: How Do Gift Taxes Work?
Today, Optima Tax Relief Lead Tax Attorney, Phil, talks about a popular giving season topic: gift taxes. Did you know gifting can sometimes lead to taxes owed? It’s the season of gifting, making things like real estate, cars, money, and almost everything else with monetary value subject to tax. The gift tax is a […]
What is Currently Not Collectible Status?
When taxpayers are unable to pay their tax liabilities, the IRS offers Currently Not Collectible (CNC) status. This temporarily suspends debt collection efforts by the IRS. It provides individuals with breathing room to get their finances under control. In this article, we will explore what CNC status entails, who may qualify for it, and how […]
2025 IRS Tax Brackets and Standard Deductions
With 2025 on the horizon, taxpayers are beginning to plan for how they will file their returns. The IRS updates tax brackets and standard deductions annually to account for inflation and legislative changes. This will affect how much individuals and families owe. Let’s examine the newly announced 2025 tax brackets and standard deductions, as well […]