Taxes & Your Savings Archives - Optima Tax Relief

When Does the IRS Pay Interest on Tax Refunds?

Elyssa Carlos — Thu, 22 Aug 2024 08:00:00 +0000

The IRS typically processes tax refunds quickly, but in some cases, there can be delays. When these delays occur, taxpayers might wonder if they’re entitled to interest on their refund. The IRS does pay interest on tax refunds under specific circumstances. However, the rules governing when and how much interest is paid can be complex. […]

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Tax Deductions for Senior Citizens

Elyssa Carlos — Thu, 25 Jul 2024 08:00:00 +0000

Figuring out taxes in retirement can be challenging, but understanding available tax deductions can significantly impact your financial health. Senior citizens have access to a variety of tax benefits and deductions that can help reduce taxable income and enhance savings. Here’s a comprehensive guide to the key tax deductions and credits available to senior citizens. […]

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What is the Foreign Tax Credit?

Elyssa Carlos — Wed, 24 Jul 2024 08:00:00 +0000

As globalization continues to connect economies and individuals around the world, many U.S. taxpayers find themselves earning income in foreign countries. This income often comes with the obligation to pay foreign taxes, leading to a complex situation where individuals and businesses may face double taxation. Double taxation is when a taxpayer pays taxes on the […]

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What is the Work Opportunity Tax Credit?

Elyssa Carlos — Mon, 15 Jul 2024 08:00:00 +0000

The Work Opportunity Tax Credit (WOTC) is a valuable federal tax credit available to employers who hire individuals from certain targeted groups that have consistently faced significant barriers to employment. Established as part of the Small Business Job Protection Act of 1996, the WOTC aims to incentivize businesses to diversify their workforce and provide job […]

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Gross Income vs. Net Income

Elyssa Carlos — Tue, 09 Jul 2024 08:00:00 +0000

Understanding the differences between gross income and net income is essential for managing personal finances and comprehending tax obligations. Both terms are instrumental when it comes to earnings. However, they do serve different purposes and are used in various financial contexts. This article explores what gross income and net income entail, how to calculate them, […]

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Are Property Taxes Deductible?

Elyssa Carlos — Tue, 02 Jul 2024 08:00:00 +0000

Property taxes are a significant aspect of homeownership and real estate investment. They are levied by local governments and are a critical source of funding for public services such as schools, roads, and emergency services. Property taxes are paid on property owned, either by an individual or a legal entity. How much property tax you are […]

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What is a Taxpayer Assistance Center?

Elyssa Carlos — Mon, 24 Jun 2024 08:00:00 +0000

Navigating tax laws and filing requirements can be overwhelming for many individuals and businesses. To help ease this burden, the IRS offers a valuable resource known as a Taxpayer Assistance Center (TAC). These centers provide in-person help for various tax-related issues. They help ensure that taxpayers have access to the information and support they need. […]

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Tax Fraud on the Dark Web

Elyssa Carlos — Mon, 29 Apr 2024 08:00:00 +0000

In today’s digital age, the internet offers incredible opportunities for communication, commerce, and connection. Yet, beneath the surface, there exists a shadowy corner known as the dark web, where illicit activities thrive. Among these dark deeds, tax fraud has emerged as a significant concern, impacting individuals and governments alike. Let’s take a closer look at […]

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Disposable Income Explained

Elyssa Carlos — Thu, 18 Apr 2024 16:00:00 +0000

Disposable income serves as a key economic indicator. It reflects the financial health and spending power of individuals and households. It represents the money available after taxes, providing a glimpse into how much individuals can spend, save, or invest. However, taxes play a significant role in shaping disposable income, influencing spending patterns and economic behaviors. […]

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Taxes on Inherited Accounts

Elyssa Carlos — Tue, 16 Apr 2024 16:00:00 +0000

Inheriting assets can be a bittersweet experience. While it often signifies the passing of a loved one, it can also provide financial stability and opportunities for the future. However, along with the emotional and financial aspects of inheritance come tax implications, especially regarding inherited accounts. Understanding how taxes apply to inherited accounts is crucial for […]

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