NH Department of Revenue Administration Shares 2025 Tax Updates and Filing Guidance

Concord, NH – As New Hampshire residents and business owners gear up for tax season, the New Hampshire Department of Revenue Administration (NHDRA) is offering updates on this year’s tax filing procedures and form changes, along with guidance and valuable tips to assist both taxpayers and tax preparers during the filing process.

“Each year brings form changes and updated procedures for tax filing, and it is critically important NHDRA works to keep taxpayers up to date about those changes to simplify the filing process,” said NHDRA Commissioner Lindsey Stepp. “Our goal is to empower taxpayers and tax preparers with the knowledge and resources they need to easily and effectively navigate the complexities of our tax system.”

NHDRA is highlighting the following updates to help New Hampshire taxpayers and tax preparers manage the 2025 tax season:

Tax Rate Modifications:

• Interest and Dividends Tax rate was reduced to 3% for periods ending on or after December 31, 2024.

Interest and Dividends Tax Repeal:

• The Interest and Dividends Tax is repealed for tax periods beginning on or after January 1, 2025.
• Taxpayers who are required to file a 2024 Interest and Dividends Tax return (or a return for any prior year) are still required to do so and should include any required payment of tax, interest, and penalty that may be due.

Interest Rate Changes for 2025 Calendar Year:

• The interest rate for failing to pay the entire tax owed by the due date has increased to 10%.
• The interest rate for overpaid taxes is now 7%.

Form Adjustments:

• The 2024 Interest and Dividend return (DP-10 form) was updated to remove the option to request credit for overpayments due to the repeal of the Interest and Dividends Tax.
• The BET Credit Worksheet now has an extra line to account for BET credits from the 10th taxable period.
• The Schedule of Credits (DP-160 form) was updated to remove Section B, Page 2, lines 10(a) through 11 to eliminate the redundancy between this form and the BET Credit Worksheet.
• Additional lines were added to Business Profits Tax returns to accommodate the legislation effective January 1, 2024, allowing businesses to deduct interest expenses when calculating taxes, without regard to the IRC §163(j) limitation, which sets restrictions on the deduction of business interest expenses for tax purposes.

NHDRA is also sharing a series of tax filing tips for the 2025 season:

Go Paperless and Get Refunds Faster

New Hampshire taxpayers can streamline their filing process using NHDRA's Modernized e-File (MeF) system, or the Granite Tax Connect (GTC) online portal. Opting for electronic filing eliminates the need to mail a paper copy to NHDRA, expediting the process.

Additionally, taxpayers filing Business Tax or Interest and Dividends Tax returns through MeF or GTC can now opt for direct deposit refunds, enabling faster and more convenient access to funds.

Not So Fast

Yes, the Interest and Dividends Tax is repealed for tax periods beginning on or after January 1, 2025. However, returns and all required payments are still due for tax years 2024 and prior. Taxpayers can file returns and make payments electronically through the abovementioned methods or find the updated 2024 DP-10 and prior year forms on NHDRA’s website.

Use Updated Forms

Taxpayers often mistakenly use old tax forms instead of the updated ones for the current year. It is crucial to use the most recent forms, which NHDRA updates annually to prevent errors. These updated versions are accessible on NHDRA’s Forms Page. For convenience, many forms and returns can also be filed online through GTC.

Speaking of forms, the federal 1099-G form for the 2024 tax year is available online in taxpayers’ Granite Tax Connect account and can be reprinted, if needed. 1099-Gs are also sent via traditional mail.

Pay On Time to Avoid Extra Charges

To avoid extra charges, taxpayers should pay any owed tax, penalties, or interest upon filing their return. The NHDRA accepts electronic payments or mailed checks with payment coupons.

Regardless of whether an extension has been requested for filing, payments are due by the deadline. GTC offers a convenient solution for scheduling automatic payments from bank accounts, allowing taxpayers to manage payments seamlessly through the portal.

New Features

NHDRA updated its Revenue Information Management System (RIMS) and Granite Tax Connect (GTC) web portal this past fall, which increased security, efficiency, and ease of use. Key features of the latest RIMS upgrade include:

• A secure passkey sign-on process using an authenticator application.
• A simplified process for creating a user login with a single username and password, providing the ability to request access to taxpayer accounts as needed.
• The ability to pay, review, or update payment plans.
• The ability to review Power of Attorney information on file.
• Request paper forms online.
• Request certifications of good standing, withdrawal, or dissolution for New Hampshire businesses.
• Review the real-time status certification requests filed through GTC.
• Submit an appeal or dispute request.
• For more information on the latest RIMS and GTC features, click here.

Connect with NHDRA

NHDRA has a new look! On June 25, 2024, NHDRA launched its updated website, designed to be easier to use and more responsive to taxpayers. Should taxpayers require assistance, resources are readily available on the Taxpayer Assistance page of the new website, and the Taxpayer Services Division is ready to address any questions or concerns by phone at 603-230-5000, Monday through Friday, 8 a.m. to 4:30 p.m.

For more information on NHDRA and its services, visit our new and improved website at www.revenue.nh.gov.

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 2023, NHDRA collected $2.8 billion in taxes, most of which went to the New Hampshire General Fund and Education Trust Fund. NHDRA also assists 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.

Press Release

Media Contact:

Jeff Mucciarone
Mobile: 413-454-4179
jeff@montagnepowers.com