In the world of taxation, income is broadly categorized into two main types: earned and unearned income. Earned income is derived from active participation in a trade or business. Conversely, unearned income encompasses various sources that don’t require direct effort or labor. This article explores the concept of unearned income, its sources, and how it […]
Where’s My Tax Refund?
Now that the April tax deadline has passed, you might be wondering, “Where’s my tax refund?” Optima CEO David King and Lead Tax Attorney Philip Hwang explain how you can track your refund, how long you have to collect your refund and how to stay compliant with the IRS. If You Need Tax Help, Contact […]
Do You Pay Taxes on Lawsuit Settlements?
When individuals or businesses are involved in legal disputes that result in settlements or judgments in their favor, one common question arises. Do you pay taxes on lawsuit settlements? The answer to this question can vary depending on the nature of the lawsuit, the type of damages awarded, and specific circumstances surrounding the case. Let’s […]
Ask Phil: What’s on Phil’s Tax Radar?
Today, Optima Tax Relief Lead Tax Attorney, Phil, talks about his three takeaways from the current tax landscape. IRS Interest Rates Could Increase For much of the pandemic, we saw IRS interest rates hold steady. For example, the interest rate accumulating on unpaid taxes was 3% for half of 2020 and all of 2021. In […]
Disposable Income Explained
Disposable income serves as a key economic indicator. It reflects the financial health and spending power of individuals and households. It represents the money available after taxes, providing a glimpse into how much individuals can spend, save, or invest. However, taxes play a significant role in shaping disposable income, influencing spending patterns and economic behaviors. […]
I Filed a Tax Extension. Now What?
Filing taxes can be a stressful ordeal for many individuals, but for some, the April deadline comes too soon. If you’re one of the many Americans who filed for a tax extension, you’ve gained a little breathing room. However, it’s essential not to let that extra time slip away without acting. Here’s a guide on […]
Taxes on Inherited Accounts
Inheriting assets can be a bittersweet experience. While it often signifies the passing of a loved one, it can also provide financial stability and opportunities for the future. However, along with the emotional and financial aspects of inheritance come tax implications, especially regarding inherited accounts. Understanding how taxes apply to inherited accounts is crucial for […]
Tax Tips for Remote Workers
In an era where remote work is becoming increasingly prevalent, individuals are enjoying the freedom and flexibility that come with working from the comfort of their own homes. However, along with this newfound flexibility comes the responsibility of managing your finances efficiently, especially when it comes to taxes. Remote workers face unique tax considerations that […]
Ask Phil: What If I Can’t Afford to Do My Taxes?
Today, Phil discusses what options you have if you cannot afford to do your taxes. If you can’t afford to do your taxes, you can check to see if you’re eligible for free tax preparation. You can check out these two sites for more information. IRS Free File If you would like to file your […]
Expenses You Didn’t Know Were Tax Deductible
Tax deductions can help lower your tax bill and even increase your tax refund on your return. While most people are aware of common deductions like mortgage interest, charitable donations, and medical expenses, there are a plethora of lesser-known expenses that could potentially save you money on your taxes. There are several tax deductions you […]