Paying Off a Mortgage

Hudson, NH Homeowner Looks for Advice

The interest paid on a mortgage is tax-deductible.  When you pay off your mortgage, you will no longer be paying interest and will lose this tax deduction. This will make your taxes go up as a result of eliminating this mortgage interest deduction.  Similarly, as you continue to pay your mortgage down over the years the amount of interest paid annually, and the tax deduction that goes along with it, will be reduced.

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tax-bracket

Amherst, NH Residents Asks for Help

For each month that your estimated tax payment is due, but not paid, the IRS charges a 0.5% penalty.  As the months go by, this penalty percentage will increase to a maximum of 25% of the taxes owed.  Quarterly estimated tax payments are due April 15th, June 15th, September 15th, and January 15th of the following year.  When the date falls on a weekend, the payment is due the following weekday.  A missed payment is seen by the IRS as an underpayment and is treated as such.

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Are Social Security Benefits Taxed?

Are Social Security Benefits Taxed

Hudson, NH Resident Nearing Retirement Has Questions

If your individual income exceeds $25,000 or $32,000 for couples filing jointly, you must pay taxes on your Social Security benefits.  Any income lower than this, the benefits are not taxed.  Incomes between $25,000 and $34,000 for individuals and $32,000 and $44,000 for joint filers can have up to 50% of their benefits taxed.  If your income exceeds that threshold, up to 85% of your Social Security can be taxed.

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How to Avoid Tax Penalties on a 529

How to Avoid Tax Penalties on a 529

Amherst, NH Parent Has Questions

A 529 is a great way to save for education expenses.  Withdrawals are tax-free when used on qualified education expenses.  However, if the money is withdrawn for non-qualified expenses or if there is money left over to be withdrawn after all expenses are paid this is considered taxable income.  In addition to paying taxes on the leftover amount, you will also incur a 10% penalty for these withdrawals.

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How to Track Your Tax Refund

How to Track Your Tax Refund

Amherst, NH Resident Looks for Answers

The IRS typically issues a tax refund within 21 days of receiving electronically filed returns and 42 days after receiving paper returns.  Mail delivery is taking longer to process so this may be delayed if you are mailing your tax return or are expecting a check by mail as your refund.  The IRS’ web site allows you to track your refund status at Get Refund Status (irs.gov).  You will need your social security and the anticipated refund amount that you are expecting.

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What Are the Tax Benefits of Marriage?

What Are the Tax Benefits of Marriage?

Litchfield, NH Newlyweds Wonder About Their Taxes

Once married, you and your spouse can file taxes jointly, which has a number of tax benefits.  If either one of you makes significantly less income, this can lower your tax bracket and reduce your tax rate.  Combining incomes will bring the partner in the higher tax bracket to a lower level, reducing the couple’s overall tax bill.  There are also more deductions available to married couples filing jointly, including a higher threshold for charitable contributions and residency gain.

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Child Tax Credit

Nashua, NH Resident Looks for Clarification

Currently taxpayers can claim a tax credit of $2,000 per child under age seventeen.  The American Rescue Plan raises that amount to $3,600 for children under age six and $3,000 for those between six and seventeen.  This change means additional tax credit per child, and it allows those that are seventeen to now qualify as well.  While the majority of families with minor children will qualify for this additional tax credit, there are income limits that will restrict others.

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How to File a Tax Amendment

How to File a Tax Amendment Brookline, NH

Brookline, NH Residents Needs Help

To file a tax amendment, you will need to submit new forms for the sections of your taxes that are being amended.  The IRS’ web site allows you to download these forms from previous tax years.  You will need to submit the 1040X form, also available on the IRS web site.  Using this form, you can write in the reason for filing the amendment.

A Brookline resident needed to make an amendment to a previous year’s tax return.  Wanting to make sure this was done properly, he contacted Merrimack Tax Associates.

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How Does Divorce Affect Your Tax Filing?

How Does Divorce Affect Your Tax Filing

Hudson, NH Divorcee Seeks a Better Understanding

The IRS does not consider a separation when it comes to filing your taxes.  Only if a legal divorce decree occurs during the calendar year will it affect your taxes.  If the divorce is finalized by December 31st, the IRS will consider you divorced for the entire calendar year for tax purposes.  The biggest change is that you can no longer file your taxes jointly, but must file as single or head of household.  Any children can only be deducted on the taxes of one parent, which is often the custodial parent.

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Single vs. Head of Household

Single vs. Head of Household

Amherst, NH Resident Has Questions

Unmarried individuals have the option of either single or head of household as their tax status.  When filing as head of household, you have a much higher standard deduction than single filers, as well as a better overall tax rate.  To qualify as head of household you must be unmarried, pay greater than half the costs of supporting a household and have at least one dependent that lives with you.

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(603) 429-2009

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405 Daniel Webster Hwy
Merrimack, NH 03054
(603) 429-2009

Regular Hours

Sunday: Closed
Monday: 9AM-4PM
Tuesday: Closed
Wednesday: 9AM-4PM
Thursday: Closed
Friday: 9AM-3PM
Saturday: Closed

Tax Season Hours (Feb 1 - Apr 15)

Sunday: Closed
Monday: 9AM-5PM
Tuesday: 9AM-5PM
Wednesday: 9AM-5PM
Thursday: 9AM-5PM
Friday: 9AM-4PM
Saturday: 9AM-2PM