The Individual Taxpayer Identification Number (ITIN) is a crucial identification number used by individuals who are required to have a U.S. taxpayer identification number but are not eligible to obtain a Social Security Number (SSN). It’s primarily used for tax purposes. If your ITIN is set to expire or has already expired, renewing it is […]
Article from May 2025
Federal Tax Treatment of LLCs
Starting a business can be an exciting venture, but it also comes with numerous financial and legal considerations. One crucial aspect that entrepreneurs must understand is taxation. Limited Liability Companies (LLCs) have gained popularity as a business structure due to their flexibility and liability protection. However, the taxation of an LLC can be a bit […]
Ask Phil: What does EITC stand for?
Today, Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, explains one of the most valuable tax breaks for low- to moderate-income earners: the EITC. What Is the EITC? EITC stands for the Earned Income Tax Credit. It’s a refundable tax credit designed to help working individuals and families with low to moderate […]
The Tax Consequences of Winning the Lottery or a Big Prize
Winning the lottery or a big prize can be lifechanging, whether it’s a multimillion-dollar jackpot, a luxury car, or a once-in-a-lifetime vacation. However, what many winners don’t realize is that a major portion of their prize will never make it into their bank accounts because of taxes. The tax consequences of winning the lottery are […]
The IRS Identity Protection PIN: Should You Get One?
Tax season can be stressful enough on its own, but for many, it comes with an added worry: identity theft. In recent years, the IRS has reported tens of thousands of fraudulent tax filings each season. Many of these were submitted using stolen Social Security numbers (SSNs) before the actual taxpayer had a chance to […]