Tag: tax deductions

What Are the Tax Benefits of Marriage?

Written by Paul Belfiore on May 14, 2021. Posted in Blog, Taxes.

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.

What are the Changes to the Child Tax Credit?

Written by Paul Belfiore on May 7, 2021. Posted in Blog, Taxes.

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.

Are Home Improvement Projects Tax Deductible?

Written by Paul Belfiore on February 26, 2021. Posted in Blog, Taxes.

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.

What to Do If You are Missing Tax Paperwork

Written by Paul Belfiore on February 12, 2021. Posted in Blog, Taxes.

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.

Will Your Business PPP Loan Be Tax Deductible?

Written by Paul Belfiore on January 29, 2021. Posted in Blog, Taxes.

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.

What is the Difference Between Long and Short-Term Capital Gains Tax?

Written by Paul Belfiore on December 24, 2020. Posted in Blog, Taxes.

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.

Does a Company Need to Be a 501(c)(3) to Be a Charitable Tax Deduction?

Written by Paul Belfiore on December 11, 2020. Posted in Blog, Taxes.

Nashua, NH Resident Has Concerns

A 501(c)(3) organization is one that is recognized by the federal law as a non-profit. These organizations are recognized by the IRS as being tax-exempt with primary activities being of a charitable nature. To be able to deduct charitable contributions on your taxes, organizations much fall under section 501(c)(3). This is also a good way to affirm whether the organization is indeed a charity.

What are Itemized Deductions?

Written by Paul Belfiore on November 27, 2020. Posted in Blog, Taxes.

Back to the Basics for this Nashua, NH Resident

Itemized deductions are a range of expenses that are deductible on your taxes. These include mortgage interest, property taxes, medical and dental expenses that exceed 7.5% of your adjusted gross income, charitable donations and more. Itemized deductions reduce your taxable income significantly, resulting in less taxes paid and, in some cases, even a lower tax bracket.

Will You Incur a Penalty if You Miss the Tax Filing Deadline?

Written by Paul Belfiore on November 13, 2020. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

Not filing your taxes on time could result in a failure-to-file penalty. This penalty is 5% of the unpaid taxes for each month that the tax return is late, up to five months. Continuing to ignore your taxes could result in the IRS taking action in the form of a federal tax lien on your property, seizing your property and even filing charges for tax evasion.

What are the Reasons to Amend a Tax Return?

Written by Paul Belfiore on September 11, 2020. Posted in Blog, Taxes.

Nashua, NH Resident Asks for Advice

Amending a tax return in your favor can give you money back that you had not been entitled to before these changes. Amendments such as claiming overlooked deductions, IRS rule changes, miscalculations and a corrected 1099 or W2 can all work in your favor, giving you a larger return. You will want to make changes to past tax returns if there are errors that may be flagged by the IRS, including unreported income.