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Tag: taxes

What are the Tax Benefits of Owning a Home?

Amherst, NH Homeowners Looks for Future Tax Advantages

There are many tax advantages for homeowners, particularly when itemizing your taxes. If you have a mortgage on your home the interest paid each year can be deducted from your taxable income. This is only available if you are itemizing your taxes, as opposed to taking the standard deduction. If you have a home equity loan, this interest can also be deducted when filing your taxes. For those self-employed individuals, the space in the home used for business purposes can be deducted including heat, utilities, and insurance, saving you money on your overall tax bill.

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How Can You Get Your Tax Refund Quickly?

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. 

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Amherst, NH Family-Owned Business Looks to Hire Teenaged Family Members

Family-owned businesses have many tax advantages when employing family members.  Money paid to family members reduces the net income of the business, thereby reducing the overall tax burden.  In addition, insurance costs and other benefits offered to the employed family members can also be deducted from the business’ profits as an expense.  When a parent is the sole proprietor and the business is not incorporated when children under the age of 18 are employed, neither the business nor the employed minor are required to pay FICA taxes.  Having a family member on payroll, whether a minor child or spouse, can significantly reduce the amount of taxes owed at the end of the year.

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How Will Cash App Payments Affect Your Taxes?

Brookline, NH Taxpayer Has Questions

With the prevalence of money exchanged on Venmo, PayPal, and other cash apps, the IRS has stated that it will be cracking down on those receiving cash app money exceeding $600 in the calendar year.  The threshold for receiving third-party payments is $600.  When the amount exceeds this, the recipient is required to file a 1099-K.  In past years Form 1099-K was only required for gross income from cash apps exceeding $20,000 or more than 200 separate transactions during the calendar year.  This change will affect many sellers who receive payment through these cash apps.

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What are Some Tax Credits for Employers?

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.

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Can Business Meals Be Used as a Tax Deduction?

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.

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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.

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What to Do If Your Tax Refund Is Delayed?

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.

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How is Crypto Taxed?

Litchfield, NH Resident Has Questions

It is important to keep in mind that profits from cryptocurrencies, including bitcoin and other digital coins, are taxed by the IRS.  Just like a stock investment, cryptocurrency profits are subject to capital gains.  This may be short-term capital gains if the crypto was owned for less than one year or long-term capital gains for investments exceeding one year.  Similarly, any losses can offset other gains and lower the total amount that you pay in taxes.

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What Tax Deductions Do Rental Properties Offer?

Litchfield, NH Resident Looks for Advice

A rental property can offer a steady income for the landlord.  In addition to the monthly rent, these types of properties come with many tax deductions that can save you money.  Mortgage interest, property taxes and any repairs are all tax deductible.  There are plenty of less obvious deductions including milage associated with the rental, insurance, utilities and loss of income when the rental is vacant.

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