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Optima Newsletter – March 2024

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Hoping for the Child Tax Credit? Don’t Wait to File

The U.S. House of Representatives has approved a bill that has the potential to grant families significant tax benefits. The aim is to strengthen tax breaks, offering substantial financial support to American households and leading to significant savings. Among the many items addressed in the bill is the expansion of the Child Tax Credit (CTC), a tax benefit designed to assist families with the cost of raising children. In this article, we’ll review the details of the CTC expansion and the next steps needed to pass the bill. 

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Tax Tips and Updates for the 2024 Filing Season

Tax season is in full swing. With several filing options and a potentially larger Child Tax Credit to claim, there’s a lot to know before you file. Optima CEO David King and Lead Tax Attorney Philip Hwang provide a comprehensive guide for the 2024 tax filing season and show you how you can get the most when filing your tax return. 

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An Overview of Estate & Inheritance Taxes

Sometimes after a loved one dies, we must deal with grief, funeral planning, and an estate. In some cases, we inherit assets from a deceased loved one. Unfortunately, not much in this life comes for free, and even the things we inherit can cost us. In this article, we will take a closer look at estate and inheritance taxes, including who is affected by them and how they work.  

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What is the Kiddie Tax?

Navigating the complexities of taxes can be challenging for anyone. When it comes to families with children, there are additional considerations to be aware of. One such consideration is the IRS Kiddie Tax. This set of rules is specifically aimed at taxing unearned income of certain children at their parent’s tax rate. Understanding how the Kiddie Tax works is crucial for parents to effectively manage their tax liabilities. Let’s delve deeper into what the Kiddie Tax entails and how it might affect your family’s tax situation. 

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Optima Newsletter – February 2024

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Can the IRS Take My Pension?

The IRS is responsible for collecting taxes to fund government operations. While the IRS has various tools at its disposal to ensure tax compliance, there are limitations on what assets it can seize. One question that often arises is whether the IRS has the authority to take pensions. In this article, we will explore the complexities surrounding this issue and understand the safeguards in place to protect retirement savings. 

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8 Pieces of Advice from a Tax Professional

Navigating the complex tax landscape can be overwhelming. Fortunately, tax professionals, like those at Optima Tax Relief, are here to provide expert guidance and assistance. We spoke to three of our long-standing tax professionals about actions taxpayers can take (or avoid) to improve their tax situations. Vice President of Resolution and Lead Tax Attorney, Philip Hwang, Director of Resolution, Carlos Maggi, and Audit Tax Professional, Rafael Garcia, draw on their wealth of experience and offer eight invaluable pieces of advice to help you navigate the intricacies of tax season.

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Which TCJA Provisions are Expiring Soon?

Since its enactment in 2017, the Tax Cuts and Jobs Act (TCJA) has significantly impacted the American tax landscape, introducing a slew of changes aimed at reducing tax burdens for individuals. However, many of these provisions were designed to sunset after a set period. Most are slated to expire in 2025. As this deadline approaches, it’s essential to examine the implications of these expiring provisions and how they might affect taxpayers across the nation. 

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What Happens to Tax Debt When You Die?

Death is an inevitable part of life, but what happens to our financial obligations when we pass away? Among the many considerations that arise after someone dies, tax liabilities can be a complex issue that requires careful attention and understanding. While tax liabilities don’t simply vanish upon death, the way they’re handled can vary depending on several factors. These include the type of liability, the estate’s assets, and applicable laws. Let’s delve into what happens to tax debt after death and explore the implications for their estate and heirs. 

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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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