Tag: File Income Tax

Do College Students Need to File Their Own Tax Return?

Written by Paul Belfiore on May 31, 2024. Posted in Blog, Taxes.

Family in Hollis, NH Has Questions About Their Future College Student

If a single college student made more than $13,850 throughout the year or had an employer withhold taxes from their paycheck, they should file their own tax return. If their unearned income, including interest, dividends, unemployment compensation, and income as a beneficiary of a retirement plan, exceeds $1,250 for the year a tax return must be filed. If the college student is self-employed with an annual income of $400 or more, a tax return would also need to be submitted at the end of the year reporting this income.

What to Do If There Is a Calculation Error on Your Taxes After Filing

Written by Paul Belfiore on May 17, 2024. Posted in Blog, Taxes.

Hudson, NH Resident Discovers His Mistake

If you discover a mistake in the calculations on your tax return after filing, the IRS will often catch this mistake and make the necessary adjustments to the calculations. There is no need to file an amendment for mathematical errors in your tax return. You will want to make the changes on your end to determine how this will affect your final tax numbers. This can mean that your refund will be larger than expected, smaller, or it could mean that you will end up owing the IRS money. If there is a significant change, particularly in what you owe on your taxes, you will receive a notice in the mail from the IRS indicating the difference.

What Happens If You Don’t File Your Taxes on Time?

Written by Paul Belfiore on April 12, 2024. Posted in Blog, Taxes.

Milford, NH Resident Starts to Panic

If you miss the tax deadline and owe money on your taxes, you will likely incur a penalty up to 5% of the amount of taxes you owe for each month that it is late. This penalty will accrue on top of the tax payment that you already owe the IRS. If this extends beyond sixty days, the minimum penalty is $100 or 100% of the tax due, whichever is less. If you file for an extension this must be done prior to the tax deadline. The extension will give you until October 15, 2024 to file your 2023 taxes. Filing the tax extension in time and subsequently filing your taxes before the October deadline will wipe out the incurred penalties.

At What Age Do You Need to Begin Paying Federal Taxes?

Written by Paul Belfiore on April 28, 2023. Posted in Blog, Taxes.

Parents of Hollis, NH Teen Have Questions

For underaged children, filing a federal tax return is dependent on your income rather than your age. If
a minor child’s income exceeds $12,950 (for tax year 2022) they need to file a tax return. Any income
below this amount does not need to be claimed. If the teen is working for an employer, they will likely
automatically withhold taxes. To have this money refunded, a tax return will need to be filed for the
working minor. For those minors that are self-employed, if their income exceeds $400, they will need to
file a tax return. Self-employment taxes, including Social Security and Medicare contributions, will be
required on this self-employed income.

Can Business Meals Be Used as a Tax Deduction?

Written by Paul Belfiore on August 26, 2022. Posted in Blog, Taxes.

Amherst, NH Business Owner Has Questions

In 2018 the Tax Cuts and Jobs Act eliminated the ability for businesses to deduct entertainment and recreation expenses. However, the Business Meal Tax Deduction was not eliminated with this change. To qualify for this deduction the meal expense may not be lavish or extravagant, as subjectively determined. The taxpayer or an employee of the taxpayer must be present at the meal and the food and drink must be provided to a business associate.

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.

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.

What Tax Documents Should You Collect at the End of the Year?

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

Brookline, NH Resident Looks to Plan Ahead

Employers and financial institutions have until January 31^st to send your end of year tax documents. Knowing that this will be coming soon, it is a good idea to keep an eye out for these critical items. This includes a W2 from employers, 1099-INT and 1099-DIV from financial institutions documenting interest and dividends earned throughout the year, Form 1098 outlining any mortgage interest paid, and additional 1099 forms for other income earned.

How Does a Stock Sale Affect Your Taxes?

Written by Paul Belfiore on December 31, 2021. Posted in Blog, Taxes.

Hudson, NH Resident Seeks Clarity

Stock shares sold from a regular brokerage account will be subjected to capital gains tax. If the assets were owned for less than a year, this is short-term capital gains. For assets that you have had longer, you will need to pay long-term capital gains on the profit. Short-term capital gains are typically the same tax rate as your current tax bracket, while long-term capital gains can be anywhere from 0% to 20% depending on your taxable income and filing status.

What to Do if You Can’t Pay Your Tax Bill

Written by Paul Belfiore on December 17, 2021. Posted in Blog, Taxes.

Hudson, NH Resident Has Concerns

If you cannot pay your tax bill when it is due, the outstanding amount owed will begin to accrue interest and penalties. If time goes on without any payment to the IRS, they may put liens on your property or garnish your wages. In extreme cases of tax evasion, violators may be subjected to jail time.