Filing back taxes may seem overwhelming, but catching up is essential to avoid penalties, interest charges, and potential legal consequences. Whether due to an unexpected financial crisis, oversight, or miscalculation, owing back taxes isn’t uncommon. This article will guide you through what back taxes are, the consequences of ignoring them, and actionable steps to file […]
Can the IRS Take My Social Security?
Social Security benefits provide a crucial lifeline to millions of Americans, particularly retirees, disabled individuals, and others who rely on these payments for their basic needs. But when you have unpaid taxes, many beneficiaries fear that the IRS could step in and take a portion of their much-needed Social Security payments. It’s an unsettling thought, […]
Ask Phil: Important 1099-K Update for Small Businesses
Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses an important tax update for small businesses and self-employed individuals coming in 2025. If you receive payments through platforms like PayPal, Venmo, Shopify, Etsy, or other payment services, you will receive a 1099-K form for tax reporting purposes. Form 1099-K report payments made to merchants and […]
Ask Phil: Should I Itemize or Take the Standard Deduction?
Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses a hot topic: itemized deductions vs. standard deduction. Which is better for you? Deciding whether to itemize deductions or take the standard deduction depends on your specific financial situation. For the 2024 tax year, the standard deduction amounts are: You may benefit from itemizing if your […]
What is IRS Form 1040-X?
Today, Optima Tax Relief Lead Tax Attorney, Phil, discusses IRS Form 1040-X, Amended U.S. Individual Income Tax Return. Many taxpayers wonder what they should do if they made an error on their tax returns. Maybe you filed under the wrong status or received another 1099 after you filed your taxes. Perhaps you forgot to claim […]