Tag: taxes

What to Do If Your Tax Refund Is Delayed?

Written by Paul Belfiore on May 27, 2022. Posted in Blog, Taxes.

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.

How is Crypto Taxed?

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

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.

What Tax Deductions Do Rental Properties Offer?

Written by Paul Belfiore on April 1, 2022. Posted in Blog, Taxes.

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.

Common Tax Return Errors

Written by Paul Belfiore on March 18, 2022. Posted in Blog, Taxes.

Amherst, NH Resident is Careful to Avoid These Mistakes

Filing before you have all your tax documentation is a common mistake. Without this necessary paperwork finalized, some of the numbers in your tax return may not be accurate. The 2021 Child Tax Credit statements were mailed at the beginning of the year to families that received this money. If the money on this statement and that reported on your tax return are not in sync, this will require a manual review by the IRS. Math errors in your tax return can be a red flag for an audit. It is important to make sure that your calculations and figures are correct prior to filing.

How Will Living and Working in Different States Affect Your Taxes?

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

Are COVID-19 Tests and PPE Tax Deductible?

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

Nashua, NH Resident Looks for Tax Savings

The IRS has stated that COVID-19 home testing kits can be considered a medical expense under the tax code. Personal protective equipment (PPE) that is used primarily for preventing the spread of COVID-19 also falls under this tax code. This includes masks, hand sanitizer and sanitizing wipes. However, to be eligible for deducting these items on your taxes the total for all medical and dental expenses must exceed 7.5% of your adjusted gross income.

What are the Tax Advantages of Real Estate Investing?

Written by Paul Belfiore on October 15, 2021. Posted in Blog, Taxes.

Amherst, NH Resident Considers Real Estate

When investing in real estate properties, you can deduct the money paid in property taxes, property insurance and mortgage interest on your taxes. Money that goes to improve or repair a rental property can be deducted from your taxes as well. This will greatly reduce the taxable income that you make from your rental property, making this a more lucrative investment.

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.

How to File a Tax Amendment

Written by Paul Belfiore on April 23, 2021. Posted in Blog, Taxes.

Brookline, NH Residents Needs Help

To file a tax amendment, you will need to submit new forms for the sections of your taxes that are being amended. The IRS’ web site allows you to download these forms from previous tax years. You will need to submit the 1040X form, also available on the IRS web site. Using this form, you can write in the reason for filing the amendment.

A Brookline resident needed to make an amendment to a previous year’s tax return. Wanting to make sure this was done properly, he contacted Merrimack Tax Associates.

Single vs. Head of Household

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

Amherst, NH Resident Has Questions

Unmarried individuals have the option of either single or head of household as their tax status. When filing as head of household, you have a much higher standard deduction than single filers, as well as a better overall tax rate. To qualify as head of household you must be unmarried, pay greater than half the costs of supporting a household and have at least one dependent that lives with you.