Tag: Tax Rate

Office Supplies

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.

Continue reading

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

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.

Continue reading

Working in Different States Taxes

Hollis, NH Residents Wonders How New Job Will Affect Her Tax Filing

Living and working in different states can pose an interesting challenge when filing taxes.  In most cases you will need to file multiple tax returns, a resident tax return for that state that you live in and a non-resident return for the state where you work.  Filing two separate tax returns does not mean that you will have to pay two separate tax bills.  On your resident state tax return you will report your tax liability from your non-resident tax return.  All states allow filers to claim a tax credit based on taxes paid to other states.

Continue reading

When Do You Stop Paying Social Security Tax?

Are Social Security Benefits Taxed

Nashua, NH Residents Looks for Answers

Social Security taxes are taken out of an employee’s paycheck in the form of FICA (Federal Insurance Contributions Act).  This tax covers both Social Security and Medicare.  In general, everyone working and earning a paycheck will need to pay this tax.  Very high earners will max out their Social Security contribution before the end of the year, only to have it resume after the new calendar year.  The maximum taxable wage for 2022 is $147,000.  Any income in excess of this will not have the FICA tax withheld.

Continue reading

How Will the Child Care Deduction Affect Your Taxes?

How Will the Child Care Deduction Affect Your 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. 

Continue reading

How Will Receiving a Large Sum of Money Affect Your 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.

Continue reading

How to Avoid Tax Penalties on a 529

How to Avoid Tax Penalties on a 529

Amherst, NH Parent Has Questions

A 529 is a great way to save for education expenses.  Withdrawals are tax-free when used on qualified education expenses.  However, if the money is withdrawn for non-qualified expenses or if there is money left over to be withdrawn after all expenses are paid this is considered taxable income.  In addition to paying taxes on the leftover amount, you will also incur a 10% penalty for these withdrawals.

Continue reading

Child Tax Credit

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.

Continue reading

What are Itemized Deductions?

Tax Lien

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.

Continue reading


Get in Touch

(603) 429-2009

Call Us Today

Sign up for Our Newsletter

Subscribe for news and updates.

405 Daniel Webster Hwy
Merrimack, NH 03054
(603) 429-2009

Regular Hours

Sunday: Closed
Monday: 9AM-4PM
Tuesday: 9AM-4PM
Wednesday: 9AM-4PM
Thursday: 9AM-4PM
Friday: Closed
Saturday: Closed

Tax Season Hours (Feb 1 - Apr 15)

Sunday: Closed
Monday: 9AM-5PM
Tuesday: 9AM-5PM
Wednesday: 9AM-5PM
Thursday: 9AM-5PM
Friday: 9AM-4PM
Saturday: 9AM-2PM