Tag: tax deductions

Are Health Insurance Premiums Tax-Deductible?

Written by Paul Belfiore on June 26, 2020. Posted in Blog, Taxes.

Self-Employed Milford, NH Resident Has Questions

Self-employed individuals are able to deduct all premiums paid for health insurance. This deduction is not available if the individual is eligible to participate in an employer’s health care plan but chooses to decline. If you qualify for coverage under a spouse’s healthcare plan but decline this also, the tax deduction is ineligible. Keep in mind that self-employed individuals are not able to deduct more than their generated income in a single calendar year.

How Will Working from Home Affect My Taxes?

Written by Paul Belfiore on June 12, 2020. Posted in Blog, Taxes.

Can a Home Office Be Considered a Business Expense

Windham, NH Resident Seeks Advice

Employees working from home are no longer able to deduct business expenses, as this deduction was eliminated in 2018. Only self-employed individuals can qualify for home office deductions. Self-employed workers can claim either $5 per square foot of home office space up to 300 square feet, or a percentage of the home and costs to maintain it as a deduction.

How are Lottery Winnings Taxed?

Written by Paul Belfiore on April 3, 2020. Posted in Blog, Taxes.

Lucky Nashua, NH Resident Seeks Advice

Lottery, and other winnings throughout the year, that are $600 or more are taxed by the IRS. If the money is received as a lump sum, you will pay the full tax amount. If it is drawn out over several years, you will be taxed by what you receive for each calendar year. The federal tax on winnings is 24% when and the local government will also take their own portion for taxes. You can expect to pay between 30-35% of taxes on your winnings.

What is the Difference Between Earned Income and Adjusted Gross Income?

Written by Paul Belfiore on March 20, 2020. Posted in Blog, Taxes.

Brookline, NH Resident Has Questions

Earned income refers to all of the ways that you get paid throughout the year. This includes your paycheck, commissions, bonuses and income less expenses for self-employed individuals. It also includes money earned from investments, interest, dividends, alimony and Social Security. Adjusted gross income refers to this money less any standard deductions that are available to you. These deductions, referred to as ‘above the line deductions’, are those that are standard to everyone regardless of whether they are itemizing.

Are Child Care Expenses Tax-Deductible?

Written by Paul Belfiore on February 28, 2020. Posted in Blog, Taxes.

If your annual income is $15,000 or higher, you can take advantage of the childcare expenses tax credit. This tax break allows you to deduct up to $3,000 in childcare expenses. This can include daycare, babysitter fees and even summer camp. For two or more dependents this deduction totals $6,000.

Can a Home Office Be Considered a Business Expense?

Written by Paul Belfiore on August 30, 2019. Posted in Blog, Taxes.

Hudson Resident Looks for Answers

One deduction that can add up for small business owners is the home office. However, take this deduction carefully as it can trigger an IRS audit. You can qualify for this deduction if the area is used exclusively and regularly for business purposes. This area must be used as the principal location for the business, or it is a place where you regularly meet with customers.

What Medical Expenses are Tax Deductible?

Written by Paul Belfiore on August 16, 2019. Posted in Blog, Taxes.

Litchfield Resident Seeks Advice

Qualified, unreimbursed medical expenses that exceed 10% of your adjusted gross income for the calendar year can be deducted from your taxes. These deductions include preventative care, treatment, surgeries, dental and vision care. Prescription medications also fall into this deduction.

What Qualifies as a Non-Cash Charitable Tax Deduction?

Written by Paul Belfiore on April 26, 2019. Posted in Blog, Taxes.

Nashua, NH Resident Seeks Guidance

For non-cash donations that are worth less than $250, a receipt from the charity will suffice for record keeping, allowing you to deduct this on your taxes. The receipt should contain a list of all items being donated, their condition and an estimated value for each. For donations exceeding the $250 value you will need a written acknowledgement from the charity in addition to the receipt.

Should I Itemize Deductions on My Tax Return?

Written by Paul Belfiore on April 11, 2019. Posted in Blog, Taxes.

Amherst, NH Tax Filer Wonders

By itemizing deductions on your tax return, you are choosing from the many individual tax deductions, instead of taking a flat-rate deduction. In some cases, itemizing deductions can save you money on your taxes. Deductions that can be itemized include medical expenses, property taxes, charitable contributions, mortgage interest and many more.

What Home Improvements are Tax Deductible? Amherst Resident Wonders

Written by Paul Belfiore on March 15, 2019. Posted in Blog, Taxes.

Home improvements made during the same calendar year as selling the home can offer some tax relief from any profit made during the sale. For 2019 there is also one big tax credit for adding energy efficient systems to your home, including solar, geothermal or fuel cell technologies. Improvements done to a home office are also tax deductible.