New Hampshire Department of Revenue Administration Offers Tax Season Support and Resources
DRA compiled tax filing tips based on data from prior tax seasons
Concord, NH (March 3, 2021) — As taxpayers prepare for the March 15 and April 15 filing deadlines, the New Hampshire Department of Revenue Administration (NHDRA) is offering filing tips for Granite State taxpayers. Using common filing errors from previous tax seasons, and guidance for the taxability of COVID-19 relief funds, NHDRA compiled a comprehensive set of tips to reduce the likelihood of processing delays for taxpayers during NHDRA's busiest season of the year.
“Last year's tax season was one of the most unusual we have ever experienced,” said NHDRA Commissioner Lindsey Stepp. “With the addition of COVID-19 relief funds and several statutory changes, this year's tax season will be unique as well. Our team is ready to help, and we encourage all taxpayers to consider these tips and use the available resources as we enter the 'rush' period of tax season.”
Even though last year's filing season was like no other, the NHDRA team worked throughout the early months of the pandemic to ensure that documents and revenue were quickly processed and deposited. It processed nearly 112,000 documents totaling nearly $386 million during last year's tax season.
Filing Tips for New Hampshire Taxpayers
File and Pay Taxes Through Granite Tax Connect
Many taxpayers, including those who pay Meals & Rental Tax, Business Profits Tax, Business Enterprise Tax, Interest & Dividends Tax and Communication Service Tax, can now utilize the Granite Tax Connect (GTC) online portal to file taxes. Once taxes have been filed, users can make payments and monitor the status of returns as well.
If taxpayers file online through Granite Tax Connect, there is no need to mail a paper copy; in fact, submitting both may slow the process.
Taxability of COVID-19 Relief Funds
For taxpayers who received COVID-19 relief funds last year, knowing how those funds will be taxed is important. All state-level and federal-level relief, not including loans, distributed to taxpayers required to file a Business Profits Tax (BPT) return should be included as income on taxes for BPT purposes. Taxpayers may deduct business operating expenses, even when those expenses are paid for with relief funds. Therefore, only the portion of these funds that are not
spent on deductible business expenses will ultimately be subject to taxation. Additionally, any state-level or federal-level relief received by taxpayers required to file a Business Enterprise Tax (BET) return that is utilized to pay wages or other compensation to employees, interest, or dividends should be included in the enterprise value tax base of the business and subject to the BET.
In some instances, the federal tax treatment of federal-level relief will be different from the state-level tax treatment of those same funds. For more information about the taxability of COVID-19 relief funds, taxpayers can visit https://www.revenue.nh.gov/tirs/documents/2021-001.pdf.
Changes to Tax Law
Several recent statutory changes could have tax implications for returns being filed this year. For a detailed list of relevant statutory changes, and to learn how those changes may impact tax filings, taxpayers can visit the DRA's Technical Information Release (TIR) page and reference the yearly “Legislative Review” TIR: https://www.revenue.nh.gov/tirs/technical-releases.htm.
Confirm Form is Current
NHDRA recommends downloading the new tax forms each year as updates are made annually to reflect changes to tax law and tax rates. To access forms and instructions by tax type, taxpayers can visit https://www.revenue.nh.gov/forms/.
Channel Your Inner Mathematician
A simple miscalculation could result in delayed processing and the issuance of assessments, penalties and interest. Double-checking the math on a return will help taxpayers avoid an easily preventable mistake.
Consistency with “Primary Taxpayer”
Married taxpayers filing a joint Interest & Dividends (I&D) Tax return should ensure the same taxpayer is listed first on the return each year. Changing the order of the names listed could result in delayed processing.
Don't Forget Attachments and Schedules
Many of NHDRA's return forms require attachments to be submitted with the return. Taxpayers should carefully read the form instructions to determine which, if any, attachments, and schedules must accompany a return for it to be considered complete.
Include Payment with the Return
If tax, penalties or interest is owed, taxpayers should ensure payment accompanies the return to avoid the assessment of additional interest and penalties. Payments can be made by credit card or directly from a checking account. NHDRA can accept most major cards, including debit cards, credit cards, and some types of cryptocards. If the amount owed is not paid electronically, taxpayers should ensure a check and payment coupon is mailed to NHDRA.
The Final Step — Don't Forget to Sign
Surprisingly, NHDRA sends back hundreds of returns for missing signatures. Taxpayers should make note of the very important last step of signing the return before submitting.
For taxpayer resources online, visit https://www.revenue.nh.gov/assistance.
To sign-up to receive alerts for new guidance from NHDRA, visit NHDRA Announcements.
NHDRA's Taxpayer Services Division is available to answer all filing questions. Contact the Taxpayer Services Division by phone at (603) 230-5000 (select option 2), Monday through Friday, 8:00 a.m. to 4:30 p.m.
About the New Hampshire Department of Revenue Administration
The New Hampshire Department of Revenue Administration (NHDRA) is responsible for fairly and efficiently administering the tax laws of the State of New Hampshire. NHDRA collects approximately 80% of New Hampshire's general taxes. During Fiscal Year 2020, NHDRA collected $2.3 billion in taxes, most of which went to the New Hampshire General Fund and Education Trust Fund. NHDRA also provides assistance to municipalities in budgeting, finance and real estate appraisal.
NHDRA administers and collects the following taxes at the state level: Business Enterprise Tax, Business Profits Tax, Communications Services Tax, Interest and Dividends Tax, Meals and Rooms Tax, Medicaid Enhancement Tax, Nursing Facility Quality Assessment, Tobacco Tax, Taxation of Railroads, Utility Property Tax, Real Estate Transfer Tax; and the following taxes at the local level: Property Tax, Excavation Tax, Timber Tax. To learn more about NHDRA, please visit www.revenue.nh.gov.