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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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I established residency in New Hampshire at the end of February

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I established residency in New Hampshire at the end of February last year. I did not make estimated tax payments (quarterlies) during the year. My tax liability will be over $500 for 2012 for NH. I know I will not be subject to penalties as a result but am not sure about interest. Also, do I have to make estimated tax payments for 2013 assuming I am still a resident?

LEV :

Hi and welcome to Just Answer!
There is no interest charges as long as taxes are paid before the due date - which is for 2012 tax year - Apr 15, 2013.
The tax liability includes your income taxes and underpayment penalty (if any). As long as all tax liability will be paid before Apr 15, 2013 - there would not be any interest charges.
If the Interest and Dividend Tax for the 2013 year is expected to be more than $500 - you do need pay estimate taxes to avoid penalty.

Customer:

If i made estimated tax payments in 2013 equal to my actual taxes paid in 2012 would this avoid the penalties and interest. let's assume that my actual tax liability was $4,000 in 2012. if i made 4 payments of $1,000 on time, would this avoid any penalties or interest associated with my 2013 taxes?

LEV :

Unfortunately that would not guarantee.
NH estimate payments are not based on previous year tax liability as federal estimate taxes.
However - there would not be any underpayment penalty if you would pay at least 90% of your 2013 tax liability or if your remaining tax liability will be less than $500.
So far - if you will timely pay $4000 in estimate taxes - there will not be any underpayment penalty if your total 2013 tax liability would be less than $4500.

Customer:

that is not what they told me. you may be incorrect. check out Exception pursuant to RSA 21-J:32,IV(b)

LEV :

Yes - you are correct - you should be able to claim that as an exception - sorry for confusion -
Exception pursuant to RSA 21-J:32, IV(b) - Prior year’s tax base and facts using current period tax rate. Multiply your prior year taxable base by the current tax rate to arrive at an adjusted tax. Multiply the adjusted tax by the percentage shown in the boxes on Line 12, Columns A through D to calculate the exception amounts. If the amounts shown on Line 9 Columns A through D are greater than or equal to Line 13 corresponding Columns A through D, you qualify for exception (b).

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