Overtime pay is an integral part of many workers’ compensation packages. While employees may appreciate the boost to their paychecks, questions often arise about how overtime earnings are taxed. This is especially true after the passage of the One Big Beautiful Bill in July 2025. Understanding the tax treatment of overtime pay is essential for managing […]
How IRS Installment Agreements Work
Key Takeaways: Manage IRS debt over time: Installment agreements let taxpayers pay monthly, pause most collection actions, and reduce failure-to-pay penalties. Various plan options: Plans include Short-Term, Guaranteed, Direct Debit, Simple (individuals), Streamlined (businesses), Regular, and Partial Payment, each with different terms and fees. Eligibility requirements: Must have filed all returns, comply with current obligations, […]
How to File Taxes as a Musician or Artist
Filing taxes as a musician or artist can feel overwhelming, especially when your income comes from multiple sources like gigs, royalties, teaching, merchandise, licensing, or commissions. Unlike traditional employees, artists are often considered self-employed, which means different rules for reporting income, paying self-employment tax, and claiming deductions. The upside? With proper planning and record-keeping, you […]
Massachusetts Treasury Check Fraud: $8.8 Million Scheme Leads to Federal Charges
In one of the largest Treasury check fraud cases to emerge from Massachusetts, federal authorities have charged eight individuals with allegedly stealing $8.8 million in tax refunds that belonged to legitimate taxpayers. The scheme unfolded across Eastern Massachusetts in 2023 and 2024, affecting multiple communities and financial institutions. Three of the eight defendants have already […]
Estimated Quarterly Tax Payments Explained
For freelancers, self-employed individuals, and small business owners, managing finances is an integral part of their professional journey. One key aspect of financial responsibility is handling taxes. For those with income not subject to withholding, estimated quarterly taxes become a crucial obligation. In this article, we will explore what estimated quarterly taxes are, why they […]
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. […]
How Does Self-Employment Tax Work?
If you’re self-employed, you likely know that managing your taxes can feel more complicated than simply having an employer deduct them from your paycheck. One of the most critical aspects of your tax responsibility is self-employment tax, which covers Social Security and Medicare contributions. In this guide, we’ll break down what self-employment tax is, how […]
How Tax Relief Works
Owing the IRS can be one of the most stressful situations a taxpayer can face. Recent data shows that American taxpayers owed over $316 billion in back taxes, penalties, and interest as of the end of 2022. Much of this debt can be attributed to late filing, mathematical errors, and underreported income. Whatever the reason […]
What Parents of Children with Special Needs Can Deduct
Raising a child or dependent with special needs is both rewarding and challenging. Along with the emotional and time commitments, families often face substantial financial burdens. Specialized therapies, educational support, equipment, and medical care can cost thousands of dollars each year. Thankfully, there are special needs deductions, credits, and savings strategies designed to help parents […]
Two Big IRS Deadlines You Can’t Miss: Sept 15 & Oct 15 | Optima Tax Relief
Are you self-employed or earning income outside of a W-2? You may need to make estimated tax payments by September 15. And don’t forget about another important IRS deadline coming up: the October 15 extension deadline. Optima Tax Relief CEO David King and Chief Tax Officer & Lead Tax Attorney Philip Hwang break down two […]