Tag: Tax credits

Who Is Exempt from Paying Taxes?

Written by Paul Belfiore on December 15, 2023. Posted in Blog, Taxes.

Milford, NH Resident Asks an Important Question

There are some groups that are exempt from paying taxes. These include qualified 501(c)3 non-profit organizations, US citizens working abroad, and some low-income individuals. While most of us will have to pay some amount in taxes throughout the year, there are some circumstances when no taxes will be owed. For those with low or no income, lots of deductions, or many dependents taking advantage of the Earned Income Tax, you may wind up with no tax bill for the year.

What are Some Tax Deductions Available for Students?

Written by Paul Belfiore on December 1, 2023. Posted in Blog, Taxes.

Nashua, NH Student Looks for Student Tax Breaks

The IRS offers several tax breaks for college students, as well as graduates who are paying off student loans. The American Opportunity Tax Credit (AOTC) is available for those enrolled in their first four years of college courses. Taxpayers paying for college, either the student themselves, a parent, or spouse, can claim a tax credit of 100% on the first $2,000 spent on eligible education expenses. The Lifetime Learning Credit is another advantage for current students. This differs from the AOTC in that graduate students can be eligible, and you are not required to be enrolled for at least half of the year. Those that have student loans, whether current or former students, can deduct the interest paid on the student loans from their taxes.

How Can You Get Your Tax Refund Quickly?

Written by Paul Belfiore on February 17, 2023. Posted in Blog, Taxes.

Nashua, NH Resident Looks for a Fast Turnaround on His Return

One of the best ways to make sure you get your tax refund as quickly as possible is to file your return electronically. This eliminates the time during transit, getting your tax return at the front of the line. There is a significant backlog for paper returns and yours is unlikely to be prioritized. You should also request a direct deposit for your refund, instead of waiting for a check to be mailed.

Can a Business Deduct Charitable Contributions on Their Taxes?

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

Goffstown, NH Business Owner Looks for Clarification

Only businesses classified as corporations can deduct charitable donations on their business tax return. These contributions to charity cannot be more than 60% of the adjusted gross income. Business owners for other types, including sole proprietorships and partnerships, can deduct charitable contributions on their own personal tax return.

How to Reduce Taxes from the Sale of Property

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

Hudson, NH Resident Looks to Lessen Future Tax Burden

Profit from the sale of a home will fall under capital gains and be taxed accordingly. If your property has increased in value significantly since the time of purchase, you may be hit with a large and unexpected tax burden. The difference of what was paid for the home initially and the selling price, less closing costs, real estate commissions, and other fees is considered capital gains. If you have lived in the residence for at least two of the past five years you can exempt $250,000 and $500,000 for married couples filing jointly. Any profit exceeding this amount can be subjected to the capital gains tax.

What are Some Tax Credits for Employers?

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

Litchfield, NH Business Owners Looks for Advice

As a small business owner there are some important tax credits that can save you money, including the Work Opportunity Tax Credit. This credit, worth up to $9,600 per employee, is for veterans, long-term unemployed individuals who have been actively looking for work for 27 weeks or longer, and those receiving assistance from TANF (Temporary Assistance for Needy Families) or SNAP (Supplemental Nutrition Assistance Program). Those small businesses that offer health care to employees may be eligible for the Small Business Health Care Credit, which can cover up to 50% of healthcare premiums paid by the company for employees’ healthcare.

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.

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.

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.

How Will the Child Care Deduction Affect Your Taxes?

Written by Paul Belfiore on September 10, 2021. Posted in Blog, Taxes.

Nashua, NH Resident Looks for Answers

Child tax credit payments began over the summer and will continue through the year for qualifying families. When you go to file your 2021 taxes, you will only be eligible for half of the normal child care credit because the other half was already received throughout the second half of 2021. Since the deduction is based off of your 2020 income, a significant increase in your income may leave you owing some of the money back to the IRS if it exceeds the thresholds set.