Blog Archives - Page 9 of 13 - Merrimack Tax Associates

What to Do If You are Missing Tax Paperwork

Written by Paul Belfiore on February 12, 2021. Posted in Blog, Taxes.

Amherst, NH Resident Worries

While employers and institutions have a deadline for sending out tax paperwork, there are plenty of reasons it may fail to get into your hands. Whether lost in the mail, misplaced or some other event, the best step is to contact the issuer of the document. They may be able to send a duplicate copy right away. If you are still not having any luck getting the missing document, you can call the IRS. Providing information to the IRS about the document in question will make sure that you are covered when you go to file your taxes.

Will Your Business PPP Loan Be Tax Deductible?

Written by Paul Belfiore on January 29, 2021. Posted in Blog, Taxes.

How Will the Stimulus Package Affect Your Taxes

Amherst, NH Business Owner Has Concerns

Businesses who took advantage of the Payroll Protection Program (PPP) can breathe a sigh of relief. Legislators have decided money from the PPP will allow for the deduction of expenses. This means that businesses will not lose any tax deductions that were expected because money was paid using the PPP loans. This is big news for businesses and a huge relief of a potentially hefty tax burden.

How Does a House Sale Affect Your Taxes

Written by Paul Belfiore on January 15, 2021. Posted in Blog, Taxes.

Brookline, NH Home Seller Has Questions

If you sell a home for a profit over what you paid for it, you will not have to pay taxes on this profit unless the gains exceed the threshold set by the IRS. For single filers, this is $125,000 and $250,000 for married taxpayers. Beyond this dollar amount, the remaining profit may be taxed as capital gains.

What is the Difference Between Long and Short-Term Capital Gains Tax?

Written by Paul Belfiore on December 24, 2020. Posted in Blog, Taxes.

Milford, NH Resident Looks for Insight

Short-term capital gains come from selling capital assets that have been owned for less than one year. The tax rate for this money is equal to your ordinary tax rate. Long-term capital gains are typically taxed lower than short-term. In 2020 this tax rate was either 0%, 15% or 20%, depending on your annual income. Selling stock, land or a business that has been in your possession for less than a year will significantly increase the amount of taxes you pay on these gains.

Does a Company Need to Be a 501(c)(3) to Be a Charitable Tax Deduction?

Written by Paul Belfiore on December 11, 2020. Posted in Blog, Taxes.

Nashua, NH Resident Has Concerns

A 501(c)(3) organization is one that is recognized by the federal law as a non-profit. These organizations are recognized by the IRS as being tax-exempt with primary activities being of a charitable nature. To be able to deduct charitable contributions on your taxes, organizations much fall under section 501(c)(3). This is also a good way to affirm whether the organization is indeed a charity.

What are Itemized Deductions?

Written by Paul Belfiore on November 27, 2020. Posted in Blog, Taxes.

Back to the Basics for this Nashua, NH Resident

Itemized deductions are a range of expenses that are deductible on your taxes. These include mortgage interest, property taxes, medical and dental expenses that exceed 7.5% of your adjusted gross income, charitable donations and more. Itemized deductions reduce your taxable income significantly, resulting in less taxes paid and, in some cases, even a lower tax bracket.

Will You Incur a Penalty if You Miss the Tax Filing Deadline?

Written by Paul Belfiore on November 13, 2020. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

Not filing your taxes on time could result in a failure-to-file penalty. This penalty is 5% of the unpaid taxes for each month that the tax return is late, up to five months. Continuing to ignore your taxes could result in the IRS taking action in the form of a federal tax lien on your property, seizing your property and even filing charges for tax evasion.

How Will Freelancing on the Side Affect Your Taxes?

Written by Paul Belfiore on October 30, 2020. Posted in Blog, Taxes.

Amherst, NH Resident Seeks Advice

It isn’t uncommon today, in this gig economy, for people to have side work beyond their full-time employment. It is important to report, and pay taxes on, this additional income. If your freelancing clients are paying you in excess of $600 per year each, should be sending out a Form 1099-MISC at the end of the calendar year as a record of this money paid. When you file your taxes, all of this additional income made from freelancing should be reported to the IRS.

When Does Your Child Need to File Income Tax?

Written by Paul Belfiore on October 16, 2020. Posted in Blog, Taxes.

Parents in Milford, NH Have Questions

A rite of passage for any working teen is the filing of their first income tax. A status as a dependent does not exempt your child from filing income taxes. If the child’s earned income reaches $12,200 or unearned income, from investment interest, above $1,100. For those that are self-employed generating income, if the net earnings exceed $400 an income tax return must be filed.

How are Life Insurance Payouts Taxed?

Written by Paul Belfiore on September 25, 2020. Posted in Blog, Taxes.

Milford, NH Resident Looks for Advice

When money is paid from a life insurance policy upon death, the money is not considered taxable income and the beneficiary does not have to pay taxes. If the money is not immediately paid out but is held by the insurance company for some reason, interest that is generated during that time may be subject to taxes. If the insurance is paid to the estate, as opposed to a beneficiary, you may have to pay an estate tax on the money.