Tag: tax bracket

How to Determine Your Tax Rate

Written by Paul Belfiore on September 29, 2023. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

The tax bracket that you fall into determines the tax rate that you will pay on your income. There are seven tax brackets, ranging from the bottom at 10% to the highest rate of 37%. Factors that can affect your tax bracket include your total income, total adjusted income, number of dependents, tax credits, whether you are filing single or married, and many other financial factors. Each year the IRS releases updated tax brackets, with the accompanying tax rate for each. Keep in mind that all your income is not taxed at the highest rate, only that which exceeds the previous brackets pushing your additional income into a higher tax rate that will be taxed at this new rate.

How Will Receiving a Large Sum of Money Affect Your Taxes?

Written by Paul Belfiore on August 27, 2021. Posted in Blog, Taxes.

Amherst, NH Resident Looks for Answers

If you receive a large sum of money, the tax rate will depend on why you received the money. Money that is received through the lottery or other winnings is generally taxed at your standard tax rate. When the windfall is received because of selling real estate properties or a business, the rate will usually fall under the long-term capital gains rate, if the assets have been in your possession long enough. Money received as an inheritance may be subject to the inheritance tax depending on the state you live in. New Hampshire does not have an estate tax.

An Amherst resident recently received a large amount of money from his employer. Concerned about how this would affect his taxes at the end of the year, he sought the advice of Merrimack Tax Associates.

What is the Difference Between a Tax Rate and a Tax Bracket?

Written by Paul Belfiore on February 14, 2020. Posted in Blog, Taxes.

Your tax rate refers to the percentage of your income, when all deductions have been taken, that will go to pay taxes. The tax bracket takes into consideration your filing status, tax rate and income range. The bracket will indicate how your income is taxed based on varying levels as it increases.

Will Earning More Money Put Me in a Higher Tax Bracket?

Written by Paul Belfiore on February 19, 2019. Posted in Blog, Taxes.

Hudson, NH Resident Wonders

Your tax bracket, which can change from year to year, is determined by your annual income. The progressive income tax system we use means that the more money you earn the higher the tax bracket for this additional income. This does not mean that you pay a higher rate on all of your income, but only that income which fall into subsequent tax brackets.