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Month: November 2021

Hollis, NH Residents Wonders How New Job Will Affect Her Tax Filing

Living and working in different states can pose an interesting challenge when filing taxes.  In most cases you will need to file multiple tax returns, a resident tax return for that state that you live in and a non-resident return for the state where you work.  Filing two separate tax returns does not mean that you will have to pay two separate tax bills.  On your resident state tax return you will report your tax liability from your non-resident tax return.  All states allow filers to claim a tax credit based on taxes paid to other states.

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When Do You Stop Paying Social Security Tax?

Nashua, NH Residents Looks for Answers

Social Security taxes are taken out of an employee’s paycheck in the form of FICA (Federal Insurance Contributions Act).  This tax covers both Social Security and Medicare.  In general, everyone working and earning a paycheck will need to pay this tax.  Very high earners will max out their Social Security contribution before the end of the year, only to have it resume after the new calendar year.  The maximum taxable wage for 2022 is $147,000.  Any income in excess of this will not have the FICA tax withheld.

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