NH Income Tax
 

Did you know that NH didn't extend its income tax deadline like the Feds and many other states did? I just learned that today, when as a life-long procrastinator, I finally got around to doing my Federal Income tax and got hit with a late and underpayment penalty. Ouch! Funny, the state site says, "We feel any extension to the April 15, 2021 due date, even by one month, risks causing confusion...". Well, it had the exact opposite effect on me. Thanks Gov!

The NH budget bill (HB 1 & HB 2) this year includes a phase out of the Interest and Dividends tax. Rep.Norm Silber of Gilford has been a leader in this effort. Thank you Norm.

learned that last year...
 

I learned that lesson last year, when the state hit me with penalties and interest for "late filing". Even my CPA, who deals with clients in numerous states, was not aware that NH did not extend their deadline, (He is not based in NH). I appealed, claiming that it was not generally known, and believe it or not, they backed off.

This year, I did not make that same mistake, and neither did my accountant, as he told me that NH did not extend their deadline this year, either.

Fed income taxes...
 

I'm confused.... (not hard to do!) how does the state of New Hampshire have any say in when one must file his or her federal income taxes?

I'm a flatlander from Mass... and believe me... there's not a tax the state would ever postpone or give up. Last year Mass did not extend the deadline for the state income tax filing but it had no effect on our fed tax returns.

Cheers...

Gusman

They do not. States cannot legislate when federal taxes are due. The OP was referring to the State of NH leaving the filing date at 4/15 for state returns and not extending to 5/17 like the federal and many states have.

Many here know I am a CPA and in my opinion there was no reason at all to extend the deadline. Last year was much different with quarantining and many office closed but this year all tax documents were mailed or accessible in the required time frame. It’s just been on big headache


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The NH tax return is normally due every April 15th unless extended. So IMHO any reasonable person would have checked the see if NH extended the deadline or not this year.

Of course we TurboTax uses have to complete the Federal return first in order to fill out and file the NH return. So the Fed extension was mostly wasted on many NH income tax filers unless they owed the Feds a pile of $$ and needed the float.

Alan

I knew the NH deadline had NOT been extended because I checked. However, I had a federal refund so filed early. When I got the refund, I decided to pay NH taxes owed with part of the refund. It felt good to get it all out of the way in March :D

Heart attack
 

Just putting NH on the same line with the word income tax caused many heart attacks, specially in the legislature.

gave me a heart attack...

around 40 years in state and never heard that term...

for what it is worth a state by state study on state return on investment for taxes has NH ranked number one.. Put out by wallet hub. It is ranked 2 on taxes paid and 9th on overall government services rank. Cal is ranked 49th New York 44

What?
 

What NH Income tax is being discussed here?
This is all above my head!

The 5% NH tax on dividend and interest income was enacted in 1923. Where have you been?:D

You know, if you saved for retirement all your life and now live off those savings, you have to share 5% with everyone else in the state.:(

Alan

The confusion here is the often repeated, but false claim, that NH has no income tax.

There is 5% tax on dividends and interest income over $2,400 ($4,800 for a couple).

"general"
 

The key word here is NH has no "general" sales or income tax. We don't tax capital gains either although the Dem voted last session to add that tax. This year, the House budget phases out the I & D tax. Hopefully the Senate will go along. Gov. Sununu supports that repeal/phase out. If your interest and dividends are earned within a NH Trust, there is no NH I & D tax. You do not have to be a NH resident to have a NH trust.

And don't forget Business Profits Tax (BPT) and Business Enterprise Tax (BET). BPT taxes profits of a business and BET taxes income of business and professional people that have their own enterprise or business.

Does anyone know how much revenue is generated each year for the State with this Dividend + Interest Tax ?

I'm wondering what the total revenue loss is if the State repeals this tax....

Well that depends:

Keyword
 

Key word: "within" distributions are different. There are always exceptions.

$110mm
 

I think the estimate this year is about $110MM.
(House Bill) HB568 has a fiscal note that gives estimates through 2024. The full repeal would occur in 2025. I haven't looked at the exact language that went into HB2, the budget bill.

http://gencourt.state.nh.us/bill_Sta...txtFormat=html