Author: Paul Belfiore

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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Are Home Improvement Projects Tax Deductible?

Are Home Improvement Projects Tax Deductible

Bedford, NH Homeowner Has Questions

Homes that are used solely for personal use cannot have the cost of home improvement projects deducted.  However, if down the road you sell your home for a profit the money paid for home deductions can be deducted from this profit.  This ends up being less of a profit that will be taxed when the home is sold.  If part of the home is used for business and this area is affected by the renovations, you can deduct 100% of this cost.

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What to Do If You are Missing Tax Paperwork

Missing Tax Paperwork

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.

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Will Your Business PPP Loan Be Tax Deductible?

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.

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How Does a House Sale Affect Your Taxes

How Does a House Sale Affect Your 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.

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Long and Short-Term Capital Gains Tax

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.

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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