Tax season is a time of anticipation for many individuals, with the hope of receiving a tax refund. However, the unfortunate reality is that tax refunds, like any valuable document, can be vulnerable to theft. If you find yourself in the distressing situation of having your tax refund stolen, it’s crucial to take swift action […]
What is an Offer in Compromise (OIC)?
Tax debts can be a significant burden, causing stress and financial strain for individuals and businesses alike. Fortunately, the IRS offers various options to help taxpayers settle their debts, one of which is known as an Offer in Compromise (OIC). An Offer in Compromise is a valuable tool that allows eligible taxpayers to settle their […]
Are Employee Stock Options Considered Income?
Employee stock options (ESOs) have long been a cornerstone of compensation packages offered by companies. They are particularly common in the realm of technology and startups. ESOs represent a unique opportunity for employees to share in the success of the company they work for. They allow employees to potentially reap significant financial rewards as the […]
Who Must Pay Additional Medicare Tax?
Medicare is a vital program in the United States, providing health insurance coverage to millions of seniors and certain individuals with disabilities. To fund Medicare, various taxes are levied, including the Medicare tax. However, there’s an additional 0.9% Medicare tax that targets higher-income earners. Understanding who must pay this additional tax is crucial for both […]
IRS Collections Are Back. Will You Be Affected?
The IRS has resumed collections. If you recently received an IRS notice or owe back taxes, you could be at risk of a lien, levy, garnishment, or other means of tax collection. Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful insight on what your IRS notice means, what you need to […]
14 States That Cut Their Income Tax Rates in 2024
In a move signaling a significant shift in fiscal policy, 14 states across the United States implemented cuts to individual income taxes in 2024. This development comes as states reassess their tax structures amid changing economic landscapes and evolving political priorities. Here’s a breakdown of the 14 states that cut their income tax rates in 2024. […]
Optima Newsletter – March 2024
Hoping for the Child Tax Credit? Don’t Wait to File The U.S. House of Representatives has approved a bill that has the potential to grant families significant tax benefits. The aim is to strengthen tax breaks, offering substantial financial support to American households and leading to significant savings. Among the many items addressed in the […]
Net Investment Income Explained
Net Investment Income (NII) is a crucial concept in finance, particularly for investors, financial planners, and those subject to taxation. It encompasses various forms of income derived from investment assets, such as interest, dividends, capital gains, rental income, and more. Understanding NII is essential for optimizing investment strategies, tax planning, and financial decision-making. This article […]
Common IRS Penalties & How to Avoid Them
Owing the IRS doesn’t just stop with your tax balance. If your tax obligations are not met, you could face penalties that can make your debt even more unmanageable. Understanding common IRS penalties and how to avoid them is essential for taxpayers to stay on the right side of the law and minimize financial consequences. […]
Which Tax Professionals are Qualified to Work with the IRS on My Behalf?
When facing the difficult task of dealing with the IRS, individuals and businesses often seek assistance from tax professionals. These tax pros can help navigate the complexities of tax laws and regulations. However, not everyone is qualified to represent taxpayers before the IRS. So, which tax professionals are qualified to work the IRS on your […]