NH Income Tax

Lakegeezer · 05-12-2021, 02:52 PM

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!

Descant · 05-12-2021, 03:04 PM

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.

MeredithMan · 05-12-2021, 03:26 PM

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.

GusMan · 05-12-2021, 05:44 PM

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

joey2665 · 05-12-2021, 06:06 PM

Quote:

Originally Posted by GusMan

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

Sent from my iPhone using Winnipesaukee Forum mobile app

Slickcraft · 05-12-2021, 06:46 PM

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

jeffk · 05-13-2021, 06:45 AM

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

chaseisland · 05-14-2021, 03:17 PM

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

Patofnaud · 05-18-2021, 09:39 AM

gave me a heart attack...

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

phoenix · 05-18-2021, 01:05 PM

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

JEEPONLY · 05-19-2021, 08:18 AM

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

MAXUM · 05-19-2021, 08:40 AM

Quote:

Originally Posted by JEEPONLY

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

https://www.revenue.nh.gov/faq/interest-dividend.htm

Slickcraft · 05-19-2021, 10:29 AM

Quote:

Originally Posted by JEEPONLY

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?

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

Bear Islander · 05-19-2021, 11:47 AM

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).

Descant · 05-19-2021, 12:21 PM

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.

tis · 05-19-2021, 12:23 PM

Quote:

Originally Posted by Bear Islander

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).

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.

TheTimeTraveler · 05-19-2021, 02:26 PM

Quote:

Originally Posted by Slickcraft

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

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

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....

Slickcraft · 05-19-2021, 03:50 PM

Quote:

Originally Posted by Descant

If your interest and dividends are earned within a NH Trust, there is no NH I & D tax.

Well that depends:

Quote:

Are distributions from Trusts taxable?

For taxable periods ending on or after December 31, 2013, interest and dividend income received by estates held by trustees treated as grantor trusts under section 671 of the United States Internal Revenue Code shall be included in the return of their grantor, to the extent that the grantor is an inhabitant or resident of New Hampshire. Income reported by, and taxed federally as interest or dividends to, a trust beneficiary who is an individual inhabitant or resident of New Hampshire with respect to distributions from a trust that is not treated as a grantor trust under section 671 of the United States Internal Revenue Code shall be included as interest or dividends in the return of such beneficiary and subject to taxation in accordance with the provisions of RSA

Descant · 05-19-2021, 04:31 PM

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

Descant · 05-19-2021, 04:37 PM

Quote:

Originally Posted by TheTimeTraveler

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....

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

05-12-2021, 02:52 PM	#1
Lakegeezer Senior Member Join Date: Feb 2003 Location: Moultonboro, NH Posts: 1,692 Blog Entries: 1 Thanks: 356 Thanked 646 Times in 294 Posts	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! __________________ -lg

05-12-2021, 03:26 PM	#3
MeredithMan Senior Member Join Date: Aug 2013 Location: Bedford, NH; Meredith, NH Posts: 1,007 Thanks: 264 Thanked 830 Times in 347 Posts	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.

05-12-2021, 05:44 PM	#4
GusMan Senior Member Join Date: May 2004 Posts: 135 Thanks: 1 Thanked 45 Times in 26 Posts	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

05-14-2021, 03:17 PM	#8
chaseisland Senior Member Join Date: Jun 2007 Location: Concord, NH Posts: 164 Thanks: 16 Thanked 70 Times in 46 Posts	Heart attack Just putting NH on the same line with the word income tax caused many heart attacks, specially in the legislature.

05-18-2021, 01:05 PM	#10
phoenix Senior Member Join Date: Apr 2004 Location: phoenix and moultonboro Posts: 1,592 Thanks: 65 Thanked 288 Times in 204 Posts	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 __________________ it's tough to make predictions specially about the future

05-12-2021, 03:04 PM	#2
Descant Senior Member Join Date: Mar 2006 Location: Merrimack and Welch Island Posts: 4,597 Thanks: 1,418 Thanked 1,705 Times in 1,109 Posts	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.

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05-12-2021, 06:46 PM	#6
Slickcraft Senior Member Join Date: Mar 2008 Location: Welch Island and The Taylor Community Posts: 3,386 Thanks: 1,260 Thanked 2,148 Times in 983 Posts	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

05-13-2021, 06:45 AM	#7
jeffk Senior Member Join Date: Feb 2004 Location: Center Harbor Posts: 1,246 Thanks: 216 Thanked 483 Times in 277 Posts	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

05-18-2021, 09:39 AM	#9
Patofnaud Senior Member Join Date: Feb 2015 Location: Tilton/Paugus Bay Posts: 242 Thanks: 15 Thanked 65 Times in 46 Posts	gave me a heart attack... around 40 years in state and never heard that term...

05-19-2021, 08:18 AM	#11
JEEPONLY Deceased Member Join Date: Nov 2014 Posts: 695 Thanks: 342 Thanked 179 Times in 141 Posts	What? What NH Income tax is being discussed here? This is all above my head!

05-19-2021, 11:47 AM	#14
Bear Islander Senior Member Join Date: Apr 2004 Location: Bear Island Posts: 1,766 Thanks: 32 Thanked 441 Times in 207 Posts	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).

The Following User Says Thank You to Bear Islander For This Useful Post:
pondguy (05-19-2021)

05-19-2021, 12:21 PM	#15
Descant Senior Member Join Date: Mar 2006 Location: Merrimack and Welch Island Posts: 4,597 Thanks: 1,418 Thanked 1,705 Times in 1,109 Posts	"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.

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05-19-2021, 04:31 PM	#19
Descant Senior Member Join Date: Mar 2006 Location: Merrimack and Welch Island Posts: 4,597 Thanks: 1,418 Thanked 1,705 Times in 1,109 Posts	Keyword Key word: "within" distributions are different. There are always exceptions.