Our team at abc Payroll are specialists when it comes to NH income tax. Because each state is different, we stay in the know on the most commonly asked questions. Thus, allowing our expertise and experience to make your life easier! With the tax-filing season around the corner, here are a few of the most commonly asked questions:
Do I need to file a tax return?
If you’re not sure about whether or not you should be filing an income tax return, it may be best to seek the advice of a professional as situations are unique. However, the primary guidelines are based upon filing status, and the total earned income.
What is my filing status?
Your status will determine possible deductions, credits, and tax bracket. Thus, it’s important to get this answer right. Single, married, married filed jointly, married filed separately are all options. Again, it’s best to consult with a professional if uncertain about which category best applies to your situation. People that are self-employed tend to have the trickiest decision on filing status.
Who qualifies as a dependent?
A dependent is an individual that you were financially responsible for over the past year, even if they’re filing a return on their own. Mainly, this is children under the age of 19, children who are disabled, or students under the age of 24.
What is the standard deduction?
A standard deduction is a flat amount, regardless of other factors. Sometimes taking the standard deduction makes more sense than itemizing your deductions. In 2019, the amount is $12,200 for single, $24,400 for married filing jointly, and $18,350 for heads of household.
Can I claim an education credit?
Although there are additional rules, the three criteria that must be met are:
- You paid qualified higher education expenses during 2019
- An eligible student is enrolled at an eligible institution
- The eligible student is yourself, spouse, or dependent listed on your return
Are my tips subject taxable income?
Yes, all tips are taxable. Whether cash or credit, the IRS considers tips as a taxable source of income.
Can I deduct childcare expenses?
Yes, childcare is a deductible expense as long as the provider is eligible. Click here for more information.
Although the list could carry on for pages, we’re hoping we covered any questions you may have. If not, we’re here to help! For more information, contact us today at (978) 251-3003.