What Are Capital Gains? Capital gains represent the profit earned when an asset is sold for more than its original purchase price. This concept is crucial for investors, homeowners, and anyone involved in the buying and selling of valuable assets. Understanding how capital gains work and their tax implications can help individuals and businesses make […]
Ask Phil: How Do Natural Disasters Affect My Taxes?
Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses what tax relief options are available to taxpayers affected by the natural disasters, like the Southern California wildfires and East Coast hurricanes. Casualty Losses Casualty losses are financial losses from unexpected events like hurricanes, wildfires, or theft. To qualify for a deduction, the loss must […]
1099s Explained: Types
IRS Form 1099 is a crucial tax document used to report various types of income received outside of traditional employment. Now that we know the basics of IRS Form 1099, we can take a closer look at the different types of 1099s you can receive. Remember, if you received any income outside your employer, you might […]
1099s Explained: The Basics
Receiving a 1099 is becoming more and more common with the rise in small businesses, side hustles, and the desire for a second stream of income. With the additional income comes a different tax filing process. If you receive a 1099, it’s because you earned a certain amount of income from a non-employer. Like most […]
What To Do If You Receive IRS Notice CP45
Receiving a notice from the IRS can be unsettling, especially if you were expecting a tax refund and instead learn it has been applied to a debt. IRS Notice CP45 informs you that your tax refund has been used to pay a past-due debt owed by your spouse. This can happen if you filed a […]