Most do not realize that after a loved one passes away, it’s typically the responsibility of the surviving spouse or representative to file a final tax return on their behalf. Filing taxes for a deceased person can be a complex and emotionally challenging task. However, it is essential to ensure that the decedent’s financial matters are […]
Articles by Elyssa Carlos
How to Avoid an IRS Audit
While there is no guaranteed method of avoiding tax audits, there are things that could help trigger them. Since the Senate approved nearly $80 billion in IRS funding through the Inflation Reduction Act of 2022, with $45.6 billion specifically for enforcement, the IRS has promised an increase in tax audits. Below are some things that the IRS has historically viewed as “red flags,” which could increase the chances of an audit for […]
Joint Custody & Taxes: How Does it Work?
The structure of modern families is changing. One of the most common developments is joint custody, where divorced or separated parents share the responsibilities of raising their children. This arrangement not only has a profound impact on the well-being of the children but also extends to various aspects of the parents’ lives, including their finances. In this […]
Ask Phil: Bankruptcy
Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses bankruptcy, including if and when tax debt is discharged. When you file for bankruptcy, you are relieved from most of your debts, including credit card debt, medical bills, payday loans, utility bills, car loans, mortgages, and more. Many taxpayers want to know if bankruptcies also […]
How Wash Sales Affect Your Taxes
Taxes are an inevitable part of financial life, and for investors, understanding how different transactions can impact their tax liability is crucial. One such transaction is a wash sale. Wash sales can have a significant effect on taxes. Investors should be well-versed in the rules and implications of these transactions to avoid costly mistakes. In […]