As tax season approaches each year, one of the most common decisions taxpayers face is whether to file their taxes early or wait until closer to the deadline. While there is no one-size-fits-all approach, understanding the pros and cons of each option can help individuals make an informed decision that suits their unique situation. This […]
Where to File and Pay Taxes as a Digital Nomad
The rise of digital nomadism has transformed how people work, allowing individuals to earn an income while traveling the world. However, while the freedom to work from anywhere is appealing, it also raises complex tax questions. Digital nomads must determine where they are required to file taxes, which country has the right to tax their […]
Ask Phil: Important IRS Online Account Updates
Today, Optima Tax Relief Lead Tax Attorney, Phil, is breaking down why every taxpayer should create an IRS online account, especially heading into tax season. Why Create an IRS Online Account An IRS online account gives you secure access to your tax information anytime, without needing to call or wait for the mail. Through your […]
What is Imputed Income?
While you may not have heard of the term “imputed income,” chances are that you might be receiving it from an employer. Imputed income is essentially non-cash goods or services that you receive from your employer as a form of income. Many people think of taxable income as only the money they receive in their […]
What Does My IRS Notice Mean?
Receiving an IRS notice can be stressful, but understanding what it means is the first step toward resolving your tax situation. In Part 2 of our IRS Notices series, CEO David King and Lead Tax Attorney Philip Hwang explain what your notice means and outline the key steps you can take to resolve your tax […]
IRS Announces Interest Rates for Q2 of 2025
The IRS has announced that interest rates for the second quarter of 2025 will remain unchanged from the first quarter. These rates apply to tax overpayments, underpayments, large corporate underpayments, and corporate overpayments exceeding certain thresholds. While the rates remain steady, their impact on taxpayers and businesses remains significant. Understanding these interest rates is crucial […]
Understanding Tax Withholding
Tax withholding is a concept that many individuals encounter throughout their lives, whether as employees, freelancers, or business owners. Withholding too little tax from your paychecks can result in a tax bill during tax time, while withholding too much tax can result in smaller paychecks than necessary. That being said, understanding tax withholding is crucial […]
What is Form 1098-T?
Form 1098-T is an important tax document for students and parents navigating education-related tax benefits. Issued by eligible educational institutions, this form provides details on tuition and related expenses. It is meant to help taxpayers determine their eligibility for valuable tax credits. Understanding Form 1098-T is essential for students and families looking to reduce their […]
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 informed financial decisions and […]
What is an IRS Lien Discharge?
An IRS tax lien can create significant financial burdens for individuals and businesses alike. When a taxpayer fails to pay their federal tax debt, the IRS may place a lien on their property. This secures its interest in the taxpayer’s assets. This lien can make it difficult to sell property, secure loans, or conduct other […]