Under current IRS rules, you can deduct a certain amount in mileage rates if you are using your vehicle for business reasons. Every year, the IRS publishes a list of the current standard mileage rates and the amount you can deduct on your taxes.
Let’s look at the standard mileage reimbursement rate and the types of mileage that are tax-deductible.
How Much is the Current Standard Mileage Rate?
The current standard mileage rate is calculated through an annual study of businesses, where the fixed and variable costs of operating a vehicle for business is calculated.… Read the rest
If you recently purchased or built a new home, you might be wondering what tax incentives are available and if there is a new homeowners tax credit.
While there is not a direct tax credit available for buying your home, there are tax advantages to homeownership.
This article will summarize some of these benefits as well as outline the tax changes from the Tax Cuts and Jobs Act of 2018 that will affect your filing as a new home buyer.
Is There a Tax Credit for First Time Home Buyers?
… Read the rest
The Tax Cuts and Jobs Act (TCJA) completely changed the US tax system. The last such change of this magnitude happened more than thirty years ago. Millions of Americans are now left wondering what they’re entitled to and which deductions are still valid.
One of the most widely taken deductions is the deduction for mortgage interest. The TCJA didn’t eliminate it, but major changes were made. Plus, as a result of other changes, many Americans will now be ineligible to use the mortgage interest deduction going forward.… Read the rest
Homeowners are usually well informed about the home-related tax deductions that they can make at filing time. However, when purchasing a home, other costs can quickly accumulate. For buyers who can’t come up with a 20% down payment on the purchase price, they will have the added cost of private mortgage insurance (PMI).
The PMI is a policy that is taken out by the homebuyer to protect the lender against possible default on the mortgage loan.
PMI is Tax-Deductible
This income tax deduction was developed as an element of the Tax Relief and Health Care Act of 2006 and initially added to private mortgage insurance (PMI) plans issued in 2007.… Read the rest
Every year, the Federal tax brackets chart tends to change. With the new changes to the tax code, under the Tax Cuts and Jobs Act (TCJA), it’s more important than ever to determine which Federal tax bracket you fall into. It could influence how much you pay by thousands of dollars.
IRS Federal Income Brackets Chart
Here are the new tax brackets and rates organized by filing status:
Tax Brackets Single
|$0 – $9,525
||10% of taxable income
|$9,526 – $38,700
… Read the rest
As the year ends, many folks are starting to look at their taxes and assess how much money they might be getting back in their tax refund. H&R Block has a great tax calculator available online for free that we highly recommend.
Given that this tool comes in so handy, we wanted to breakdown the process behind the H&R Block Tax Calculator and to provide a little education on how the tax calculator/estimator works.
Why Use an Online Tax Calculator?
There are numerous “free tax calculators” that you can find online that will help in the process of estimating your tax situation.… Read the rest
Although an incredible number of families currently claim this valuable tax break, the IRS says many more qualify for this refundable tax credit yet neglect to take advantage of it.
The guidelines for (EIC) Earned Income Credit Table were recently increased; therefore, many more families meet the requirements and can claim the earned income credit. Take a couple of minutes to ensure you don’t pass up a credit that might provide you with a bigger refund check.
How Much are the EIC, Earned Income Credit Table Amounts for 2019, 2020?
… Read the rest
The Earned Income Tax Credit (or “EITC” for short) is an excellent option for low-income families and individual filers to utilize for a larger return and overall cash back from the government when you file your taxes. While fairly straight-forward to understand, many tax filers do no understand how the EITC works, and if they qualify. It’s estimated that nearly 1/5 qualified applicants don’t use the credit.
This article will help you understand the basics of the earned income credit, and will also help you determine if you can claim the Earned Income Credit and if you qualify.… Read the rest
If you are wondering how much of a Federal tax refund you will get, it’s possible to estimate the amount of your refund with the H&R Block Tax Calculator.
By entering in your income and answering a few simple questions, you can have a good idea of how much you’ll get back from the IRS.
Today, we are sharing how to estimate your tax refund amount for free.
How to Use the H&R Block Tax Calculator
Here is how you can estimate your tax refund in just a few minutes.
… Read the rest
Are you wondering if you’ll have to pay capital gains tax on your home sale?
What many people do not know is that a large portion of homeowners who sell their homes can avoid capital gains tax on their home sale.
How Much is Capital Gains Tax on the Sale of a Home?
When selling your primary home, you can make up to $250,000 in profit or double that if you are married, and you won’t owe anything for capital gains.… Read the rest
Do you want to get a refund the next time you remodel your home?
There is a variety of different local, state, and Federal remodel incentive programs that can help you improve the value of your home.
There is also a range of tax relief options and low-interest loans you can take advantage of, but many of them are difficult to find.
What are the Basic Requirements?
The programs offered by the government are limited to things that increase the value of your home.… Read the rest
When you have young children, one of the most difficult financial burdens is paying for dependent care, but some good news is that there are some relief options when it comes time to file your taxes.
What is the Child and Dependent Care Tax Credit?
The child and dependent care tax credit is available for almost anyone who has a dependent and is working.
The dependent care tax credit is different than the child tax credit, and this article is intended to help you understand how to claim the childcare tax credit.… Read the rest
Do you want to reduce your tax bill this year? You can maximize your tax savings by checking to see if you’re eligible to claim any of the new expanded tax credits.
The difference between a tax credit and a deduction is a deduction reduces your taxable income, whereas credits reduce the amount of tax you pay directly. Refundable credits are even better because they can reduce your tax bill even if the credit is worth more than you owe. Non-refundable credits are only valid up to the amount you owe.… Read the rest
Kids can be stressful at times, but the good news is they can save your butt during tax time. Today we are sharing some of the tax benefits that kids and other dependents bring to you.
Each child and dependent can bring you a deduction of $4050. This means that the income that is subject to federal tax is reduced. If you are in the 15% bracket, this could save you $607.50, and those in the 25% bracket could save $1012.50.… Read the rest
Are you looking to renovate your home? Usually, you can’t expect to deduct anything from your Federal tax return just because you decided to make changes to your home.
But certain home-improvements are tax deductible and can be utilized to reduce the amount of tax you pay to Uncle Sam.
There are both tax credits and deductions that can be taken when the purchase was made or afterwards. Let’s look at them.
Use Your Mortgage to Improve Your Home
If you’re buying a home, then you can reduce the costs of your renovation project by making the changes when you purchase the home.… Read the rest
Do you believe that you’ll receive a tax refund this year?
You might have heard that to stop tax fraud, refunds are going to be held longer. This applies especially to the Earned Income Tax Credit (EITC).
But with H&R Block, you can get the money you need right now.
What is a Refund Advance Loan?
A refund advance is something several tax platforms offer. You apply for a refund advance, and the money is loaned to you.
Instead of paying it back, the money is taken from your tax refund instead.… Read the rest
What is Tax Deductible for Homeowners?
Every new homeowner or buyer wants to know about the tax deductions they can claim. Did you know that your home offers a range of tax benefits?
This is the guide you need to read because the new Tax Cuts and Jobs Act (TCJA) has changed some of the tax breaks you have as a new homebuyer or long-time homeowner.
1. Interest on Your Mortgage
Most people don’t realize that within certain limits, you can deduct your mortgage interest.… Read the rest
Electric vehicle tax credits can be highly valuable, but there are a lot of confusing rules regarding how they work. This guide is going to show you what you need to know about tax credits on plug-in electric vehicles. It will also answer some of the most common questions people have.
How Much are Electric Vehicle Tax Credits Worth?
The electric vehicle tax credit is worth up to $7,500. In other words, this only applies if your tax bill is worth $7,500 or more.… Read the rest
See below how the H&R Block w2 form Early Access finder allows you to get your W-2 online.
What is the H&R Block W2 Finder?
H&R Block’s W-2 Finder s is one of the tools you can use to get your W2 form online and file your taxes fast. And that ultimately means receiving your refund faster as well.
You don’t need to wait for your W-2 to come by mail when using the H&R Block W-2 Finder. Once you pull your W-2 in electronically, it is safely stored and ready to start filing with H&R Block.… Read the rest