Author: Paul Belfiore

Is My Child’s Summer Camp and Daycare Tax-Deductible?

Written by Paul Belfiore on August 11, 2022. Posted in Blog, Taxes.

Milford, NH Resident Seeks Answers

Summer camp and daycare is tax deductible for children under age 13 or if the child is a disabled dependent. The tax credit may cover up to $3,000 in qualifying expenses for one child or up to $6,000 for two or more children. This includes money paid to a daycare center, babysitter, summer camp, or other provider offering childcare. Covered under the Child and Dependent Care Credit, this was created for working parents to offset the price for childcare. However, parents who are full-time students and those that are unemployed and actively looking for work may also qualify for this deduction

What Are the Rules for Claiming a Dependent on Your Tax Return?

Written by Paul Belfiore on July 28, 2022. Posted in Blog, Taxes.

Brookline, NH Resident Seeks Advice

There are tax deductions for those that have dependents living full-time in their household, the most common of which is the Child Tax Credit and Child and Dependent Care Credit. To qualify as a dependent, this can be a child that is under age 19 or under 24 if they are a full-time student. If the child is permanently disabled, you can qualify for these deductions regardless of age. Caring for aging relatives that are living in your home may also qualify for a tax deduction as a dependent if you are financially supporting them.

What Determines Head of Household Status When Filing Taxes?

Written by Paul Belfiore on July 14, 2022. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

Head of household tax filers can claim significantly more tax deduction than their single counterparts. To qualify for head of household status you must be unmarried or living separately from your spouse for at least six months of the year. Temporary absences for work or school are not considered living separately. The head of household must pay more than half of the expenses for the home, including rent or a mortgage, utilities, repairs and property taxes. You must have a qualifying dependent, such as a child or elderly parent, residing in the home the majority of the year.

Can Office Supplies Purchased Be Deducted from Your Taxes?

Written by Paul Belfiore on July 1, 2022. Posted in Blog, Taxes.

Milford, NH Resident Has Questions

Self-employed individuals can claim office supplies on their taxes. This includes printer ink, paper, pens and pencils and other everyday supplies that are used for business purposes. Individuals that work for an employer are not eligible for this type of deductions. Instead, you should be able to seek reimbursement from your employer for out-of-pocket expenditures for office supplies.

How Are Required Minimum Distributions (RMDs) Taxed?

Written by Paul Belfiore on June 17, 2022. Posted in Blog, Taxes.

Hudson, NH Resident Plans for the Future

Retirement income is not immune to taxes. Taxes on required minimum distributions, including traditional IRAs and 401(k)s, are taxed on their gains and their pre-tax deductible contributions. However, because retirement is likely lower than when the individual was working this is typically taxed at a lower rate. The tax rate applied to this income is determined by the income of the recipient when the money is taken out. For the most recent tax year, this tax rate was capped at 37%.

What to Do If Your Tax Refund Is Delayed?

Written by Paul Belfiore on May 27, 2022. Posted in Blog, Taxes.

Amherst, NH Resident Needs Help

If you have not yet received your tax refund, you can track this on the IRS’s web site at https://www.irs.gov/refunds You will need your social security number and the exact dollar amount of the refund that you are expecting. It isn’t unusual for refunds to be delayed, particularly those that were filed closer to the tax deadline. If there is a discrepancy on your tax return or missing documents, this will slow down your refund as the IRS works with the filer to rectify this.

How is Crypto Taxed?

Written by Paul Belfiore on May 13, 2022. Posted in Blog, Taxes.

Litchfield, NH Resident Has Questions

It is important to keep in mind that profits from cryptocurrencies, including bitcoin and other digital coins, are taxed by the IRS. Just like a stock investment, cryptocurrency profits are subject to capital gains. This may be short-term capital gains if the crypto was owned for less than one year or long-term capital gains for investments exceeding one year. Similarly, any losses can offset other gains and lower the total amount that you pay in taxes.

How to Get Your Tax Refund Faster

Written by Paul Belfiore on April 29, 2022. Posted in Blog, Taxes.

Hudson, NH Resident Looks for Tips

There are many disruptions that can slow down your tax refund, creating a significant delay in the time that it takes to receive your money from the IRS. Filing your tax return as son as possible will get you toward the front of the line as refunds are processed in the order that returns are received. E-filing will reduce the time that it takes the IRS to receive and process your tax return, eliminating delays caused by the mail.

What are the Best Ways to Save on Taxes When Paying for College?

Written by Paul Belfiore on April 15, 2022. Posted in Blog, Taxes.

Hollis, NH Resident Seeks Help

The American Opportunity Tax Credit (AOTC) allows a maximum $2,500 per child per year for those paying for an undergraduate tuition. This credit can only be used for qualifying expenses that are not being paid with a 529 distribution. The Lifetime Learning Credit offers a maximum credit of up to $2,000. The Lifetime Learning Credit is not restricted to undergraduate study and can be used in graduate programs as well.

What Tax Deductions Do Rental Properties Offer?

Written by Paul Belfiore on April 1, 2022. Posted in Blog, Taxes.

Litchfield, NH Resident Looks for Advice

A rental property can offer a steady income for the landlord. In addition to the monthly rent, these types of properties come with many tax deductions that can save you money. Mortgage interest, property taxes and any repairs are all tax deductible. There are plenty of less obvious deductions including milage associated with the rental, insurance, utilities and loss of income when the rental is vacant.