Tag: income tax

What are Some Factors that Will Affect the Size of Your Tax Refund?

Written by Paul Belfiore on April 26, 2024. Posted in Blog, Taxes.

Brookline, NH Resident Looks for Answers to This Question

There are many factors that can affect the size of your tax refund from year to year. These include life events, such as your marital status, the number of children you have, and significant life changes that may qualify you for tax credits. Your filing status, whether filing jointly, single, or as head of household can also impact the size of your tax return. Whether you take the standard deduction or itemized deductions can also impact the amount of money you receive back from the IRS. Of course, your income and the amount of taxes that you have paid throughout the year will be a big factor.

How Gambling Wins Can Affect Your Taxes

Written by Paul Belfiore on October 27, 2023. Posted in Blog, Taxes.

Hollis, NH Resident Hits the Jackpot

Experiencing a big win, whether in a casino, poker tournament, or through some other gambling venture, can feel great. It is important to know that the money that you earn through gambling is taxed by the IRS. By planning accordingly, you can be sure you won’t have any costly surprises at the end of the year. Gambling winnings are considered taxable income in most states, whether this is paid by cash, check, or electronically. This should be accounted for in the income reported for in the year that the money was won, paying the appropriate taxes on this windfall.

How to Determine Your Tax Rate

Written by Paul Belfiore on September 29, 2023. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

The tax bracket that you fall into determines the tax rate that you will pay on your income. There are seven tax brackets, ranging from the bottom at 10% to the highest rate of 37%. Factors that can affect your tax bracket include your total income, total adjusted income, number of dependents, tax credits, whether you are filing single or married, and many other financial factors. Each year the IRS releases updated tax brackets, with the accompanying tax rate for each. Keep in mind that all your income is not taxed at the highest rate, only that which exceeds the previous brackets pushing your additional income into a higher tax rate that will be taxed at this new rate.

How Many Allowances Should I Claim on My W4?

Written by Paul Belfiore on June 30, 2023. Posted in Blog, Taxes.

Londonderry, NH Resident Looks to Start New Job on the Right Foot

When you start a new job, to get paid via the company’s payroll each new employee will need to fill out
a W4 form. One of the most common mistakes on this form is how many allowances to claim. The
more allowances claimed, the fewer taxes will be withheld from your paycheck. However, if this
number is not correct for your tax filing at the end of the year you may be surprised with a hefty bill in
taxes that you owe. If you are single with one job or married filing as the of household you may want to
claim 1. Single individuals with more than one job or those married and dividing total allowances may
choose to claim 2. Those married with minor children living at home, will often choose three
allowances.

At What Age Do You Need to Begin Paying Federal Taxes?

Written by Paul Belfiore on April 28, 2023. Posted in Blog, Taxes.

Parents of Hollis, NH Teen Have Questions

For underaged children, filing a federal tax return is dependent on your income rather than your age. If
a minor child’s income exceeds $12,950 (for tax year 2022) they need to file a tax return. Any income
below this amount does not need to be claimed. If the teen is working for an employer, they will likely
automatically withhold taxes. To have this money refunded, a tax return will need to be filed for the
working minor. For those minors that are self-employed, if their income exceeds $400, they will need to
file a tax return. Self-employment taxes, including Social Security and Medicare contributions, will be
required on this self-employed income.