Taxpayers can expect to receive a third stimulus check in addition to aid for individuals who are unemployed and facing eviction from their homes. The new Economic Rescue Package would also provide assistance to small businesses, states and local governments and will increase funding for vaccinations and testing.
Individuals may be able to receive up to $15,000 when buying their first property thanks to President Biden’s proposal. Although the details of the credit are still being worked out, if passed, taxpayers can expect to receive up to $15,000 in advance when purchasing their first home.
Taxpayers should start collecting all their important tax documents ahead of tax season in order to get the most out of their tax return and to ensure that avoidable errors are not made that could potentially delay their refund. Here are some tax filing tips taxpayers need to review before filing their taxes.
Working from Home? Here’s what You need to know about the Home Office Deduction.
A large number of Americans have made the transition from working in the office to working at home. With so many people starting to file their tax return, they may have questions about if they qualify for any working from home tax breaks. Here’s everything you need to know about claiming a home office tax deduction.
Many taxpayers have questions surrounding their Economic Impact Payments (EIP). What to do if they haven’t received their latest stimulus check? Do they qualify to receive the full amount? How can they check the status of their payment? Optima CEO David King and Lead Tax Attorney Phillip Hwang provide answers to some of the most important questions Americans have regarding Economic Impact Payments.
The IRS and the Treasury Department have already begun to distribute a second round of stimulus checks to individuals. For those who opted for direct deposit, they can expect to receive their money very soon if they haven’t already. Taxpayers who are receiving their economic impact payment in check form, can expect to receive it throughout all of January.
If Student Loan Forgiveness is Adopted, it Could Impact Your Taxes.
Student debt cancellation is currently being discussed between Senate Minority Leader Chuck Schumer and President-elect Joe Biden. Because of the ongoing pandemic, many Americans are struggling to financially stay afloat because of the ongoing pandemic. Student loan relief could help those who don’t have the ability to make their monthly payments. Here are some possible tax implications you could face if your student debt goes away.
Although the stock market has been unstable throughout the course of the pandemic, millions of individuals have still been investing in stocks and making the most of stock prices that have hit their lowest. Those who have been investing in the stock market or have sold any stock will need to report any capital gains they received to the IRS in order to avoid any tax implications.
Small Businesses have been hit with a PPP tax Change. Here’s Everything You need to Know.
The IRS has added additional information to the Small Business Administration’s Paycheck Protection Program. The additional details entail that tax-deductible items will not be deductible if they were paid through PPP funds.
Every tax year, a large number of people are claimed as dependents on tax returns. Under certain circumstances, a dependent can be claimed if they are not related to you. Once someone is identified as a dependent and placed on your tax return, you’re essentially informing the IRS that you’re financially responsible for that person.
For 2020, the dependent credit for other than qualifying children is $500. A credit is different from a deduction because the credit reduces any taxes that are owed while a deduction will reduce the amount of income that is subject to tax.
A partner can be claimed as a dependent if they meet the following criteria:
No one else is able to claim your partner as a dependent child on their tax return.
The person that is being claimed must be a U.S. citizen, a U.S. national, a U.S. resident alien, or a resident of Canada or Mexico also might qualify.
Your partner must live with you year-round.
Your partner’s gross income for the year cannot exceed $4,300 for 2020.
You will need to require half of your partner’s financial support during the year.
Your partner cannot be married to someone else or file a joint return with that other person.
You and your partner must live together for the entirety of the year in order to qualify as a dependent. If you have moved in the middle of the year, you will be required to wait until the next year before claiming your partner as a dependent.
If you’ve taken a vacation, or were deployed with the military, you will be considered living together. Based off IRS guidelines, the following types of absences will not count against you:
Illness, such as time spent in a hospital or rehabilitation facility
Vacations
Business travel or assignments
Education-related absences
Absences for military service
Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.
The CARES Act has allowed millions of student loan borrowers to pause their student loans until January 31st. For the time being, loan payments, interest and collections on defaulted federal loans have been put on hold in order to provide financial relief for those who were financially affected by COVID-19.
McConnell Announces Second COVID-19 Stimulus Deal may be Reached by the End of the Year
A possible COVID-19 stimulus deal may happen by the end of December. Both House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer have been working to announce a stimulus deal to present to the American people and businesses.
Are Short-Term Disability Claim Payments Considered Additional Income?
For those who suffer from serious medical conditions, disabled temporarily from an injury or are pregnant, you could be covered by short-term disability payments through a private insurer that can be obtained through your employer. The payments that you received could be considered taxable, here’s what you need to know.
Every year taxpayers are required to file their taxes in order to remain compliant with the IRS. When filing, a taxpayer will either receive a refund or owe a balance which they have the option to pay off in order to stay out of collections. For those who earn a low income, they may not be required to file their tax returns. Here’s everything you need to know.
