Understanding the tax differences between Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) is critical for anyone trying to reduce healthcare costs and lower their tax bill. While both accounts are designed to help pay medical expenses with pre-tax dollars, the rules governing eligibility, taxation, and long-term benefits are significantly different. These differences can impact not just your […]
Ask Phil: What is a CSED?
Today, Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, answers a Reddit question about CSEDs: “If my CSED is 11/15/25, does it expire at the beginning or end of the month?” To get there, he breaks down what a Collection Statute Expiration Date (CSED) actually is and how the IRS calculates it. What the CSED Really Is […]
2026 Tax Changes: What You Need to Know
The 2026 tax year brings a mix of inflation-based adjustments and structural reforms that will affect how much many Americans owe or save when they file their returns in 2027. Driven largely by routine IRS indexing and major provisions from the One Big Beautiful Bill Act (OBBBA), these updates touch nearly every area of the tax code, from income […]
Qualifying Surviving Spouse Filing Status Explained
Qualifying Surviving Spouse Eligibility The qualifying spouse filing status, previously known as the qualifying widow(er) status, is a tax-filing option available to individuals who have lost their spouse. You can use qualifying spouse for the two tax years after your spouse’s death (not including the year of death). For the year of death, you may […]
Ask Phil: 5 Helpful Tax Tips If You’re Self-Employed
Today, Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, shares five essential tax tips every self-employed individual should know. Tip 1: Make Your Quarterly Estimated Payments As a self-employed taxpayer, you are responsible for paying your taxes quarterly. Missing these payments can result in penalties and interest, so staying on schedule is key. Tip […]
Top Strategies to Pay Off Back Taxes Faster
Owing back taxes can quickly become one of the most stressful financial problems a person faces. Penalties and interest continue to grow, IRS notices become more aggressive, and many taxpayers aren’t sure which option will actually help them resolve the debt faster rather than just postpone it. The good news is that the IRS offers multiple ways […]
What Happens If You Owe the IRS But Move Out of the Country?
If you owe the IRS and move out of the country, your tax problems do not stay behind. Many taxpayers believe that relocating abroad puts them outside the reach of the IRS, but U.S. tax law does not work that way. In fact, moving overseas can sometimes make IRS issues more complicated, not less. The United States […]
Filing Taxes as a Professional Athlete
Professional athletes face some of the most complex tax rules in the U.S. tax system. High earnings, short career spans, frequent travel, multi-state income, endorsements, and evolving tax laws create challenges that go far beyond a typical W-2 job. Understanding athlete taxes is not optional; it is essential to protecting income, avoiding penalties, and building long-term financial security. […]
Stay Ahead of the IRS in 2026: Estimated Taxes, Recordkeeping, and New Child Account Rules – Optima Tax Relief
Looking to finish 2025 strong and stay on track for 2026? CEO David King and Chief Tax Officer & Lead Tax Attorney Philip Hwang share essential end-of-year tax tips, including how to manage estimated payments, keep accurate records, avoid penalties, and navigate potential IRS enforcement like levies. If You Need Tax Help, Contact Us Today […]
Marginal Tax Rate vs. Effective Tax Rate: What’s The Difference?
Understanding taxes is a cornerstone of smart financial planning. Yet, many taxpayers confuse the terms marginal tax rate and effective tax rate, which can lead to misconceptions about their actual tax burden. In this comprehensive guide, we will explore both concepts in depth, illustrate calculations with examples, and discuss why knowing these rates is essential […]