Optima Newsletter

Taxpayers may have to pay back some of the new $3,000 Child Tax Credit

Child Tax Credits are expected to be distributed out to qualifying taxpayers throughout July by the IRS. Some recipients may be required to pay back a portion of their credit for the next tax filing season. Here is what eligible taxpayers need to know before receiving the credit.

Read more

What is a Federal Tax Lien?

Owing a tax balance with the IRS could lead to an individual having a lien placed on their assets or property. Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful tips on what people could expect if a lien is filed against them and what they would need to do to resolve their tax liability.

Read more

Taxpayers are reminded that Filing an Extension is not an Extension to Pay Taxes

Taxpayers that have filed a tax extension and also have a tax balance need to be aware that filing an extension with the IRS will not stop penalties and interest from accruing. The IRS offers a variety of options that they should consider when it comes to dealing with the IRS.

Read more

Did you receive Multiple Notices about your Economic Impact Payment?

The IRS has issued out three Economic Impact Payments to qualifying taxpayers. The IRS also mailed out notices to those who received the payment that detailed how much of the payment they received, how the payment was made and how taxpayers should report their payment when filing their tax return.

Read More

By |Optima Newsletter|Comments Off on Taxpayers may have to pay back some of the new $3,000 Child Tax Credit

Taxpayers can opt out of Child Tax Credit monthly payments

The expanded child tax credit will be issued out to qualifying families in monthly installments starting in July. Families that qualify for the full amount will receive $300 per month for children under the age of 6 and $250 for those between the ages of 6 and 17.

Read more

How long does the IRS have to collect on your unpaid tax debt?

Optima CEO David King and Lead Tax Attorney Philip Hwang provide helpful tax tips and answer questions Americans may have about outstanding tax liabilities and how long the IRS can collect on them before their tax balance expires.

Read more

What to expect when dealing with the IRS

Those who fail to pay their tax liability in full will receive a letter from the IRS stating the amount that they owe. Once a notice is sent out, the collection process will continue until the balance has been paid in full or when the IRS can no longer legally collect on it. Individuals who owe the IRS should try to resolve the matter as soon as possible in order to prevent the IRS from coming after them.

Read more

The IRS issues a temporary increase in meal deductions for businesses

the IRS and the U.S. Treasury Department issued guidance related to the Taxpayer Certainty and Disaster Relief Act of 2020. The act provides a temporary exception to the 50% limit on the amount that businesses are able to deduct for food and beverages.

Read more

By |Optima Newsletter|Comments Off on Taxpayers can opt out of Child Tax Credit monthly payments

Taxpayers could Receive a Tax Break on Unemployment Benefits

The recently passed $1.9 trillion American Rescue Plan allows qualifying taxpayers who received unemployment during the 2020 tax year to have the first $10,200 of those benefits exempt from their federal income taxes. 

Read more

The IRS has Resumed its U.S. Passport Revocation Program

The IRS recently announced that they are resuming their Passport Revocation Program. Optima CEO David King and Lead Tax Attorney Philip Hwang discuss how this program can cause delinquent taxpayers to lose their passport until they become compliant with the IRS. 

Read more

Unemployment Fraud could affect Individuals this Tax Season

Due to the ongoing pandemic, millions of Americans lost their jobs, many of whom received unemployment benefits from their state agency. As taxpayers start to file their taxes, they need to be aware of scammers looking to file fraudulent unemployment benefits and steal their personal information.

Read more

Filing your Taxes may be much harder this year

The IRS granted taxpayers additional time to file their federal tax returns due to COVID-19 and new stimulus provisions that made the current tax filing season much more complex compared to prior years. With so many new tax law changes, taxpayers should be more cautious when filing their taxes.

Read more

By |Optima Newsletter|Comments Off on Taxpayers could Receive a Tax Break on Unemployment Benefits

Did your State Tax Filing Deadline Change? Here’s what You need to Know.

The IRS recently announced that the federal tax deadline has moved from April 15 to May 17. Taxpayers need to be aware that although the IRS is allowing them additional time to file federal tax returns, their state tax extensions may differ. Read more to see when your state tax filing deadline is.

Read more

Taxpayers in Texas have until June 15th to File their Taxes

Taxpayers who reside in an area that was severely impacted by winter storms and declared a disaster area by the Federal Emergency Management Agency automatically qualify to file their taxes up until June 15th. The new extension will also extend the 2020 contribution deadline for those affected into individual retirement accounts (IRAs) until June 15.

Read more

Working from Home could mean You will face a Double Tax Hit this Tax Season

Millions of Americans have gone from working in an office to working from home. Those who worked their office job in one state but resided in another, may need to file their taxes differently this year and could face certain tax implications.

Read more

How the IRS Taxes Cryptocurrency

Individuals who invest in cryptocurrencies need to be aware that they could face tax implications when they file their taxes. Read more to find out what you need to know before you invest in crypto and how to ensure you avoid any tax time surprises.

Read more

By |Optima Newsletter|Comments Off on Did your State Tax Filing Deadline Change? Here’s what You need to Know.

Your Latest Stimulus Check could be Garnished for Unpaid Debts

The newly passed $1.9 trillion Covid relief bill includes  $1,400 stimulus checks that will be sent out to qualifying Americans who have been financially struggling due to the ongoing pandemic. However, individuals who have unpaid debts may be at risk of having their stimulus checks garnished.

Read more

What is IRS Notice 1444 and will you need it for Filing your 20221 Taxes?

Several stimulus checks were issued out to qualifying taxpayers who needed financial assistance during the pandemic. If you were issued out a payment, you can expect to also receive Notice 1444 from the IRS. It is recommended taxpayers utilize the notice when filing their taxes to notify the IRS that they received an economic impact payment.

Read more

You could face a Marriage Tax Penalty

One thing that will change for recently married couples is the way they file their taxes. Couples will need to decide whether they will file jointly or separately based on their current circumstances. Here are a few tax-filing tips couples should consider when filing their taxes.

Read more

Rolling over your 401(k) to an IRA could Cost you

Individuals who are changing jobs should look into rolling over their 401(K) to an IRA. It is recommended that taxpayers do their research on where they should rollover their retirement account in order to avoid making a costly mistake that may cause them to owe when filing their taxes.

Read more

By |Optima Newsletter|Comments Off on Your Latest Stimulus Check could be Garnished for Unpaid Debts

Here’s what Taxpayers need to know about Biden’s $1.9 Trillion Economic Rescue Package

Taxpayers can expect to receive a third stimulus check in addition to aid for individuals who are unemployed and facing eviction from their homes. The new Economic Rescue Package would also provide assistance to small businesses, states and local governments and will increase funding for vaccinations and testing.

Read more

First-Time Homebuyers may receive up to $15,000

Individuals may be able to receive up to $15,000 when buying their first property thanks to President Biden’s proposal. Although the details of the credit are still being worked out, if passed, taxpayers can expect to receive up to $15,000 in advance when purchasing their first home.

Read more

3 Tax Mistakes to Avoid making this Year

Taxpayers should start collecting all their important tax documents ahead of tax season in order to get the most out of their tax return and to ensure that avoidable errors are not made that could potentially delay their refund. Here are some tax filing tips taxpayers need to review before filing their taxes.

Read more

Working from Home? Here’s what You need to know about the Home Office Deduction.

A large number of Americans have made the transition from working in the office to working at home. With so many people starting to file their tax return, they may have questions about if they qualify for any working from home tax breaks. Here’s everything you need to know about claiming a home office tax deduction.

Read more

By |Optima Newsletter|Comments Off on Here’s what Taxpayers need to know about Biden’s $1.9 Trillion Economic Rescue Package

When Can Taxpayers Expect to Receive their Stimulus Payment? 

The IRS and the Treasury Department have already begun to distribute a second round of stimulus checks to individuals. For those who opted for direct deposit, they can expect to receive their money very soon if they haven’t already. Taxpayers who are receiving their economic impact payment in check form, can expect to receive it throughout all of January.

Read more here

If Student Loan Forgiveness is Adopted, it Could Impact Your Taxes.

Student debt cancellation is currently being discussed between Senate Minority Leader Chuck Schumer and President-elect Joe Biden. Because of the ongoing pandemic, many Americans are struggling to financially stay afloat because of the ongoing pandemic. Student loan relief could help those who don’t have the ability to make their monthly payments. Here are some possible tax implications you could face if your student debt goes away.

Read more here

Tax Implications when Buying & Selling Stocks 

Although the stock market has been unstable throughout the course of the pandemic, millions of individuals have still been investing in stocks and making the most of stock prices that have hit their lowest. Those who have been investing in the stock market or have sold any stock will need to report any capital gains they received to the IRS in order to avoid any tax implications.

Read more here

Small Businesses have been hit with a PPP tax Change. Here’s Everything You need to Know.

The IRS has added additional information to the Small Business Administration’s Paycheck Protection Program. The additional details entail that tax-deductible items will not be deductible if they were paid through PPP funds.

Read more here

By |Optima Newsletter|Comments Off on When Can Taxpayers Expect to Receive their Stimulus Payment? 

Pause on Student Loans could End Soon. Here’s what You Need to Know.

The CARES Act has allowed millions of student loan borrowers to pause their student loans until January 31st. For the time being, loan payments, interest and collections on defaulted federal loans have been put on hold in order to provide financial relief for those who were financially affected by COVID-19.

Read more here

McConnell Announces Second COVID-19 Stimulus Deal may be Reached by the End of the Year

A possible COVID-19 stimulus deal may happen by the end of December. Both House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer have been working to announce a stimulus deal to present to the American people and businesses. 

Read more here

Are Short-Term Disability Claim Payments Considered Additional Income?

For those who suffer from serious medical conditions, disabled temporarily from an injury or are pregnant, you could be covered by short-term disability payments through a private insurer that can be obtained through your employer. The payments that you received could be considered taxable, here’s what you need to know.

Read more here

5 Reasons why You should File your Tax Return

Every year taxpayers are required to file their taxes in order to remain compliant with the IRS. When filing, a taxpayer will either receive a refund or owe a balance which they have the option to pay off in order to stay out of collections. For those who earn a low income, they may not be required to file their tax returns. Here’s everything you need to know.

Read more here

By |Optima Newsletter|Comments Off on Pause on Student Loans could End Soon. Here’s what You Need to Know.

Will a Covid-19 Relief Deal Be Struck Soon?

The ongoing pandemic has caused many Americans to suffer financially due to a loss of jobs and businesses shutting down. Proposals for another coronavirus relief package are currently ongoing and should include another stimulus check distributed out to taxpayers as well as providing assistance to businesses that are finding it difficult to stay open.

Read more here

Can Working Remotely Lead to Additional Taxes?

Many taxpayers have switched from working in the office to working at home because of COVID. Most people don’t realize that there could be tax implications when working from home and could end up with a tax-time surprise if they’re not up to date on current tax laws.

Read more here

Economic Impact Payment Extended for Non-Filers to November 21st

Taxpayers who don’t typically file their taxes and have yet to receive a stimulus check should register online on the IRS website in order to receive their economic impact payment. The IRS is allowing Americans to register online until November 21, 2020.

Read more here

Taxpayers in Financial Hardship could Qualify for Stimulus Check

Many Americans are facing homelessness or financial hardship during the ongoing pandemic could qualify for a $1,200 Economic Impact payment. If your income threshold is below $12,200 or $24,000 if you’re married, you will need to register with the IRS by November 21st in order to receive your money.

Read more here

By |Optima Newsletter|Comments Off on Will a Covid-19 Relief Deal Be Struck Soon?

Taking a CARES Act Retirement Withdrawal could Lead to a Tax Liability

If you’re out of work due to the coronavirus and in need of money fast, you might want to consider withdrawing from your retirement savings. Taxpayers who have had a negative impact on their finances due to the pandemic should know that temporary changes to the rules under the CARES Act allows taxpayers to make early withdrawals from their traditional individual accounts. Here is everything you need to know about making an early distribution and what the possible tax implication could be for you.

Read more here

Is My Social Security Number Required in Order to File My Taxes?

For those that are filing for the first time on their own, it can seem overwhelming trying to figure out what information you need to provide to the IRS in order for your return to be accepted. One question that many people ask is if a social security number is necessary to have when filing their taxes. Here’s everything you know about if your social security number is required and what you should do if you don’t have one.

Read more here

The IRS to Contact Taxpayers Who are Eligible for a Stimulus Check

Due to the ongoing coronavirus pandemic, many Americans have been struggling to stay financially afloat. To help offset the many expenses that households across America are facing, the government issued out $1,200 stimulus checks to qualifying taxpayers. If you have yet to claim your check or didn’t realize that you were eligible for relief money, you can expect the IRS to contact you to notify you about your check.

Read more here

If a Second Stimulus Check is Approved, When will it Arrive?

Ongoing negotiations are underway to pass another relief package to assist Americans that were affected by COVID-19. It is assumed that another economic relief rescue package will be passed and taxpayers will be paid out for a second time this year however, it will depend on how quickly the IRS can distribute the money to qualifying Americans. Here are important stimulus check facts taxpayers should know.

Read more here

By |Optima Newsletter|Comments Off on Taking a CARES Act Retirement Withdrawal could Lead to a Tax Liability