Many New Hampshire residents are now receiving notices from the New Hampshire Department of Revenue Administration regarding the demise of that state’s “Interest and Dividends Tax,” which was repealed effective Jan. 1, 2025.
Hold off on celebrating for one moment though. The notice reminds taxpayers that tax returns for the year ended Dec. 31, 2024, are still due and penalties can apply for underpayments and failure to timely file. As a reminder, for 2024, a New Hampshire resident owes a 3% tax on interest and dividends to the extent that together they exceed the personal or joint filer exemption of $2,400 or $4,800, respectively.
For the final 2024 return (which is due April 15, 2025), taxpayers are reminded that any overpayments will be refunded unless they are applied to amounts due for prior years. Overpayments for earlier years, for which the statute of limitations has not passed, will be refunded upon request by the taxpayer. All earlier years are still subject to audit for three years after filing, as is 2024.
Lastly, taxpayers are reminded not to make 2025 estimated Interest and Dividends Tax payments. If you mistakenly make an estimated payment for 2025, you must request a refund in writing.
If you have any questions regarding this or other state tax matters, please connect with one of our state and local tax experts at CBIZ.
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