How the Gift Tax Works

How the Gift Tax Works

Amherst Resident Seeks Advice

Giving more than $15,000 in cash or assets to one person may mean that you have to a file a gift tax return at the end of the year.  What qualifies as a gift by the IRS may surprise you, including paying for a child’s wedding, adding cash to an elderly family member’s bank account and even gifting a car.  While all of these may not require you to pay a gift tax, you will need to file IRS Form 709 to fully disclose the information.

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What is a Tax Lien?

Tax Lien

Nashua Resident Looks for Help

When an individual or business has failed to pay taxes that are owed, the federal or state government can place a lien on their property and other assets.  This lien can be removed if the parties are able to come to a payment agreement to settle the back taxes.  If no agreement is made and there is no repayment, the property can be seized with the option to sell it at auction to pay the back taxes.

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Save Money On Taxes During Retirement

Save Money on Taxes During Retirement

Nashua, NH Couple Looks For Suggestions

One of the easiest ways to keep your tax bill down in retirement is with a Roth IRA.  With this account, contribution withdrawals and money earned are tax-free.  A health savings account or HSA is a good way of setting aside money for medical expenses, tax-free. 

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How a Mortgage Can Reduce Your Tax Bill

How a Mortgage Can Reduce Your Tax Bill

Milford, NH New Homeowners Seek Advice

The money paid toward your mortgage interest reduces your adjusted gross income.  This brings down your taxable income, in some circumstances even putting you in a lower tax bracket.  To take advantage of this potential savings, you must deduct your mortgage interest from your annual tax bill.           

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Can a Home Office Be Considered a Business Expense

Hudson Resident Looks for Answers

One deduction that can add up for small business owners is the home office.  However, take this deduction carefully as it can trigger an IRS audit.  You can qualify for this deduction if the area is used exclusively and regularly for business purposes.  This area must be used as the principal location for the business, or it is a place where you regularly meet with customers.

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What Medical Expenses are Tax Deductible?

What Medical Expenses are Tax Deductible

Litchfield Resident Seeks Advice

Qualified, unreimbursed medical expenses that exceed 10% of your adjusted gross income for the calendar year can be deducted from your taxes.  These deductions include preventative care, treatment, surgeries, dental and vision care.  Prescription medications also fall into this deduction.

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Married Couples File Their Taxes

Amherst, NH Resident Seeks Advice

Married couples filing their taxes jointly can take advantage of a number of tax credits that aren’t available to couples filing separately including the Earned Income Tax Credit, Child and Dependent Care Credit, Student Loan Interest Deduction and Tuition and Fees Deduction.  The assumption may be that filing separately will put you in a lower tax bracket, however the tax brackets have a lower income threshold when filing separately.

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How to Correctly Pay Estimated Taxes

Estimated Taxes

Hudson Resident Seeks Advice

Estimated taxes must be paid quarterly to the IRS by anyone that is receiving an income without paying taxes.  This money can come from a job, investments, alimony or contest winnings.  To send in your estimated taxes, you must complete the form 1040-ES and mail this to the IRS along with your payment.  The taxes for each quarter’s income must be sent by the fifteenth of the month following the close of the quarter.

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