Taxes are an inevitable part of financial life, and for investors, understanding how different transactions can impact their tax liability is crucial. One such transaction is a wash sale. Wash sales can have a significant effect on taxes. Investors should be well-versed in the rules and implications of these transactions to avoid costly mistakes. In […]
IRS Interest Rate Increases for Q4 2023
As the fourth quarter of 2023 unfolds, taxpayers across the U.S are faced with an important development – an increase in IRS interest rates. The IRS periodically adjusts its interest rates, and these changes can have significant implications for individuals and businesses. In this article, we will explore the reasons behind the IRS interest rate […]
Ask Phil: The 411 on Tax Refunds
Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses tax refunds, including how to track when you’ll receive yours. When it comes to tax refunds, most taxpayers want to know one of three things: how much they will receive, where it is, and when they will receive it. By the time you file your […]
Don’t Fear IRS Form 1099-C
Perhaps the most feared and least understood document ever published by the IRS is Form 1099-C, Cancellation of Debt. Form 1099-C is sent to people who were so deep in debt, their creditors agreed to give them a break. They do this by either reducing or cancelling their debt altogether. Think foreclosures, short sales, credit card […]
Filing Taxes When Married to a Non-U.S. Citizen
Marriage can introduce complexity when it comes to filing taxes. When you’re married to a non-U.S. citizen, your tax situation may require additional consideration. In this article, we’ll explore the key factors to consider and offer guidance on how to navigate the U.S. tax system as a couple with mixed citizenship. Determine Your Filing Status […]
Do I Have to Report Tips on My Tax Return?
Tips, gratuities, or service charges – these additional payments to service workers are a common part of our daily lives. Whether you’re leaving a tip for your waiter, bartender, taxi driver, or hairdresser, it’s essential to know how these earnings should be handled from a tax perspective. The short answer is yes, you generally do […]
Ask Phil: When is the 2023 Tax Extension Deadline?
Today, Optima Tax Relief’s Lead Tax Attorney, Phil Hwang, discusses the October tax extension deadline. The tax extension deadline this year is October 16, 2023. Remember, an extension to file your taxes is not an extension to pay your taxes. But what if you’re still unable to pay your tax bill? One option is to […]
Do I Need Health Insurance to File Taxes?
Filing taxes can be a complex and daunting task, with various rules and regulations to consider. One common question that often arises is whether you need health insurance to file taxes. The answer to this question is intricately tied to the Affordable Care Act (ACA) and its provisions. In this article, we’ll explore the relationship […]
What is the Presidential Election Campaign Fund?
Every year when you file your taxes, you are asked a question about whether you want to donate $3 to the Presidential Election Campaign. The Presidential Election Campaign Fund (PECF) is a system of public funding for presidential campaigns in the United States. It was established as a result of the Federal Election Campaign Act […]
Are Military Benefits Taxable?
Military service members receive various benefits and compensation packages from the government to support them and their families. That said, one common question that often arises is whether these military benefits are taxable. The answer isn’t always straightforward, as it depends on the specific benefit and various other factors. In this article, we will explore […]