Here at AccountAbility we strive to provide you with the most up to date and relevant information on what you need to know each month when it comes to all things taxes and bookkeeping. Many of our clients that are New Hampshire residents have reached out to ask about paying Massachusetts income tax while working remotely during the COVID19 pandemic. So this month we’re taking a deep dive into the rules and breaking it down for you so that you don’t have to go searching through all that technical tax jargon.

Another day, another change to the Paycheck Protection Program rules. On June 22nd, the Small Business Administration released the Interim Final Rules which are meant to clarify and make official some of the guidance that has recently been released.

You may have noticed something different around here lately. No, we haven’t lost weight (thanks a lot, quarantine). But we do have some big news about our business. Tax Services of Londonderry is now AccountAbility!

One of the most universal, widely used and known tax forms just got a facelift for 2020 – the W-4. For a quick refresh, the W-4 is an IRS form you submit to your employer when you first start working. It outlines what amount of money should be withheld from your paycheck each pay period.

News flash – people are living and working way longer than they used to be! Maybe you’ve already received that memo, now it’s finally landed on the ears of the government. Despite this change in social norms retirement age and requirements have stayed very consistent until now.

It’s game on!! If you have all your tax documents you were officially able to file as of January 27th. Which means, it’s time to collect all the necessary information and get it over to our office. That can feel a little ambiguous if you don’t live and breathe taxes like we do – so here is an outline of what you need to be thinking about.

Tax season is upon us! For many of you this may feel like a very stressful time based on two factors: being underprepared or under-informed – probably both. Before you beat yourself up about it or ignore it altogether because it makes you uncomfortable, let’s look over some facts.

If only taxes were as simple as paying a percentage of your steady income into the IRS. The more complex your financial profile gets the more things come in to play when you file at the end of the year. One thing that can add to the complexity is capital gains or losses.

When it comes to taxes there is never one answer that fits every scenario. Gift tax is no different. We get this question a lot when our clients get large gifts (lucky you if it’s for a holiday!) or become the benefactor of an inheritance

Around this time of year is when you should start thinking about end of year tax preparations. First, consider if your estimated tax payments align with the actual revenue your business is on track to generate through the end of the year.

If you haven’t already heard, there is a tax break that can come with that expensive college education! It’s called the American Opportunity Tax Credit (AOTC). It can be applied to qualified education expenses for the traditional first four years of college with a maximum of $2,500 credit annually for each eligible student you have.

No one wants to think about this unless they have to, but if you are facing a divorce there are some very important things you want to think about regarding your financial planning and responsibilities. Taxes are already stressful and divorce even more so – combine the two and sometimes people would rather avoid the whole conversation.

The rule is to pay as you go, not all at the end of the year. Waiting until the end can cost you extra in the form of penalties and possibly interest. That’s why your employer withholds taxes throughout the year. For those that are self-employed, or if you have additional, substantial income, not through an employer, you’re required to pay the IRS quarterly.

Just when you thought tax season was over… you get another form in the mail. If this happens – don’t panic! Many people are unaware of Form 5498 and when it comes in the mail, they immediately think they did something wrong on their taxes.

There’s a lot of misinformation about tax filing extensions regarding who they are for, how to get one, why to get one and what does it actually even mean. Let’s be honest, the IRS doesn’t have a reputation for leniency or handing out favors. So, what’s the deal with extensions?

Tax filing season is in full swing and we are finding that people are feeling, well, a little cheated. When Trump passed the Tax Cuts and Jobs Act back in December of 2017, we all expected to pay less in taxes. But, the majority of people are finding they are getting smaller than normal tax returns – so what’s the deal?

As you start thinking about pulling together your taxes do you instantly get nervous like you did something wrong before you even get started? The reality is the IRS isn’t looking over your shoulder and they aren’t coming to knock on your door.

Whether this is your first time working with an accountant to prepare your tax return or you’ve done it year over year, it’s hard to remember all the information and documents you need. Some forms come in the mail, others you get online, and it’s possible some pieces of information might not even be on your radar.