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Optima Newsletter – January 2024

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What is Innocent Spouse Relief?

Tax matters can be complex and often present challenges for married couples who file joint tax returns. In certain situations, one spouse may find themselves unfairly penalized for the actions of their partner, leading to financial difficulties and strained relationships. To address this issue, the IRS offers a form of relief known as innocent spouse relief. This provision is designed to protect individuals who find themselves in an unjust tax situation due to the actions of their spouse. 

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IRS Collections Are Resuming: Are You Prepared?

The new year has brought both good and not so good news from the IRS. The IRS has resumed sending out collections notices to taxpayers who owe. On the other hand, they’re providing $1 billion in penalty relief to nearly 5 million 2020 and 2021 tax returns. Optima CEO, David King, and Lead Tax Attorney, Philip Hwang, provide helpful advice on who qualifies for penalty relief, how much you can expect to get back and how the IRS will notify you if you qualify for this type of relief.

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OPTIMA CEO DAVID KING SHARES HIS THOUGHTS ON BBB AWARD FOR ETHICS

Optima Tax Relief was recognized as the sole Category 4 recipient of the Better Business Bureau (BBB) International Torch Awards for Ethics. The award is a prestigious honor bestowed upon businesses that demonstrate a strong commitment to integrity, transparency, and ethical decision-making. Optima CEO, David King, has since spoken to the BBB about the award and the company’s commitment to ethical business practices.

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QUALIFYING WIDOW(ER) FILING STATUS EXPLAINED

The loss of a spouse is a challenging and emotional experience, and during such times, financial matters can add an extra layer of complexity. The tax implications of losing a spouse are among the many considerations that individuals may face. One important filing status that may apply to widows and widowers is the qualifying widow(er) filing status. In this article, we’ll cover certain tax benefits and considerations of the qualifying widow(er) filing status that can help ease the financial burden during a difficult period.

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Optima Newsletter – December 2023

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2024 IRS Tax Inflation Adjustments

As the calendar turns to 2024, the IRS has announced several inflation adjustments that will impact the tax code. These adjustments are crucial for taxpayers to comprehend, as they can influence exemptions, credits, and exclusions, shaping the financial landscape for individuals and families. Here are the IRS inflation adjustments for tax year 2024. 

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A Gold Standard in Ethics: Optima Tax Relief Triumphs at BBB International Torch Awards

Optima Tax Relief proudly announces its distinguished recognition as the sole Category 4 recipient of the Better Business Bureau (BBB) International Torch Awards for Ethics, underscoring the company’s unwavering commitment to ethical business practices. This accolade is a testament to the company’s dedication to excellence, integrity, and transparency in the tax resolution industry.

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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 matter, and how individuals can navigate this aspect of tax compliance. 

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End of Year Tax Planning

As the year comes to an end, it’s an opportune time to take stock of your financial situation and implement strategies to optimize your tax position. End-of-year tax planning is a crucial aspect of managing your finances. It allows you to make informed decisions that can positively impact your tax liability. In this article, we’ll explore various tips to help you navigate the complexities of the tax code and make the most of available opportunities. 

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Optima Newsletter – November 2023

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How Long Can the IRS Audit My Taxes?

The worst thing that can happen for most taxpayers is being told by the IRS that they are being audited. What most people don’t realize is that there is a timeframe for how long the IRS can audit an individual. This timeframe is known as the audit statute of limitations. Taxpayers have a right to dispute an IRS audit if they have proper substantiation. Discover how long the IRS has to audit taxes and what factors may affect this timeline.

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Dealing With an IRS Revenue Officer

Owing a tax liability means that individuals are at a higher risk of falling into collections with the IRS. Optima CEO David King and Lead Tax Attorney Philip Hwang explain the risks taxpayers face when handling a tax liability on their own, as well as the benefits of hiring a tax professional to help you when dealing with a revenue officer. 

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2024 IRS Tax Brackets and Standard Deductions

As we usher in the new year, it’s that time again when individuals and businesses eagerly await the release of the IRS tax brackets and standard deductions for the upcoming tax year. These figures play a pivotal role in determining the amount of tax liability for taxpayers across the nation. Let’s take a closer look at what has been announced for the 2024 IRS tax brackets and standard deductions.

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IRS Announces Another Delay in Form 1099-K Reporting

The IRS has recently announced a delay in the implementation of changes to the reporting threshold for Form 1099-K. Form 1099-K is used to report third-party platform payments. Originally scheduled for 2023, the IRS has decided to postpone the implementation of greater reporting thresholds. However, they’ve cited the need for additional time to address concerns and provide a smoother transition for affected parties. Learn the new reporting thresholds amounts and when they will be implemented. 

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Optima Newsletter – October 2023

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How Does Alimony Affect Your Taxes?

Alimony, also known as spousal support or maintenance, is a regular payment made by one spouse to another after divorce or separation. While it’s essential to ensure financial stability for the receiving spouse, it’s equally important to understand the tax implications of alimony, as they can significantly affect your financial situation. In this article, we’ll explore how alimony affects your taxes and what you need to be aware of during and after divorce. 

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ERC Scams Are on the Rise – Don’t Fall Victim

The IRS issued warnings to businesses of a rise in Employee Retention Credit scams. Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful guidance on how to recognize the warning signs of an ERC scam and what to do if you’ve already fallen victim to one.

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Are Military Benefits Taxable?

Military service members receive various benefits and compensation packages from the government to support them and their families. 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 the tax implications of military benefits and help service members better understand their financial situation.

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What You Need to Know About Hiring Your Kids for Work

As a parent, you may be looking for opportunities to teach your children valuable life lessons, including those related to money and work ethic. One unique way to do this is by hiring your kids for work within your family business or household. Not only can this provide your children with valuable skills and experience, but it can also have significant tax benefits for both you and your child. In this article, we’ll explore the ins and outs of hiring your kids for work and navigating the tax implications.

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Optima Newsletter – September 2023

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Zelle and Taxes: Will I Receive a 1099-K?

Beginning in tax year 2023, you will receive a1099-K if you receive more than $600 in aggregate payments through a payment app or online marketplace. These can include Venmo, PayPal, Etsy, eBay, Cash App, Square, Facebook, Amazon, Shopify, and others. However, there is one payment app that is not included in these new policy changes: Zelle. Here’s an overview of Zelle, including why it is not required to abide by the new thresholds and if it’s the right payment app for you. 

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IRS Ends Surprise Visits from Revenue Officers

The IRS recently announced it is ending its longstanding practice of surprise in-person visits to taxpayers. Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful insight on what communication you can expect to receive from a Revenue Officer moving forward and what you can do to resolve your tax burden with the IRS.

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How State Residency Affects Your Taxes

When it comes to taxes, the old adage “location, location, location” takes on a new meaning. State residency plays a significant role in determining the taxes you owe, as each state has its own tax laws, rates, and regulations. Things get even more tricky if you work and live in two different states. In this article, we’ll delve into the intricacies of how state residency affects taxes and why it’s crucial to understand these implications. 

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Filing Taxes During Divorce

Divorce is a complex and emotionally challenging process that can have far-reaching implications on various aspects of your life, including your finances. One crucial aspect that requires careful attention is tax filing. Filing taxes during divorce can be a daunting task, but with proper planning and understanding, you can navigate this process smoothly and ensure you meet your tax obligations accurately. In this article, we will guide you through the key steps to take when filing taxes during a divorce. 

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Optima Newsletter – August 2023

Tax Tips for Seniors and Retirees

As the golden years approach, seniors and retirees face a new set of financial challenges, with tax planning becoming increasingly important. Understanding the tax implications of retirement income sources, investments, and deductions can significantly impact a retiree’s financial well-being. In this blog post, we’ll explore some valuable tax tips designed for seniors and retirees, helping them navigate the complex tax landscape and make the most of their hard-earned money. 

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$1.5 Billion in Tax Refunds are Unclaimed. Do You Qualify?

The IRS has $1.5 billion in unclaimed tax refunds for tax year 2019 and the deadline to file is approaching quickly. Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful tips on how to find out if you’re eligible for a tax refund and how to claim it before time runs out. 

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Is Canceled Debt Taxable?

Dealing with debt can be a stressful and overwhelming experience, but imagine finally having a weight lifted off your shoulders when a creditor cancels or forgives a portion of your outstanding debt. While the relief might be immense, it’s essential to understand that canceled debt can have significant tax implications. Many individuals are unaware that in certain circumstances, forgiven debts can be considered taxable income by the IRS. In this article, we will review the concept of canceled debt and its potential tax implications.

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Can I Get Disability If I Owe Back Taxes?

Life can be challenging when facing both financial difficulties and health issues. For individuals experiencing a debilitating condition while also owing back taxes, the situation can seem overwhelming. However, it’s essential to know that there are options available to help ease the burden. In this article, we will explore the process of obtaining disability benefits while managing tax debt, providing a comprehensive guide to assist those in need. 

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