American Tax Service

Helping Americans File Their Taxes

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How to Know if You have Capital Gains

 

capital gainsIf you are in the process of going through your taxes, it’s time to understand your own taxes. Even if you have a tax professional doing your taxes, it’s still great to organize your files and know what you will owe.

Let’s look at how you should divide up your income and see if you have capital gains or losses to report this year.

IRS Taxable Income Types

Currently, the IRS allows you to report your income in two taxable brackets that include capital and ordinary.… Read the rest

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Understanding IRS Forms and Documents

Although it may seem tiresome, accurately filing your paperwork goes a long way to ensuring you get the correct refund from the IRS.

One of the most crucial documents involved in the tax declaration process is the IRS 1040 form. It forms the foundation of the tax process, and all US taxpayers should be familiar with the document.

1040 Tax Form

It is simple to use – there are separate sections to fill in your income and deductions, and to outline what you think you should be refunded for.… Read the rest

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H&R Block Free Tax Filing

h&r block free

H&R Block’s Free Online Tax Filing product is back to make sure taxpayers with simple tax situations are totally covered.

There are some major ways that H&R Block Free is the best option for simple returns.

Not only does H&R Block Free allow you to file Federal and State free, but it also includes more credits and deductions than their competitors and has 45 forms required for filing, more than 2x TurboTax.

People who are filing their taxes and want to claim the following tax credits are able to file with H&R Block Free, which is not the case with TurboTax.… Read the rest

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Which Home Improvements Qualify for Residential Energy Credits?

Upgrading your home to make it more energy-efficient doesn’t just help the environment. It also helps your wallet through reducing your energy costs, increasing your property’s value, and giving you money back in the form of residential energy tax credits for home improvements.

Help is at hand because you can take care of some of those upfront costs with the help of tax breaks on specific home improvement projects. Here’s what you need to know to claim the residential energy tax credit.Read the rest

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How to know if Your Medical Expenses are Tax Deductible

Did you spend a ton of money on medical expenses last year? If so, you may qualify for the medical expense tax deduction. This means you must spend more than 10% of your AGI on medical expenses (7.5% if you are older than 65) to qualify.

medical expense tax deductionMedical Expenses You Can and Cannot Deduct

You can deduct medical expenses for your spouse, dependents, and your own expenses that qualify.

You are not able to deduct reimbursed medical expenses. You can only deduct medical expenses that you paid for 100% out of pocket for.… Read the rest

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Which Home Improvements are Tax Deductible?

home owner tax deductionsAre 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

mortgage interest tax deduction

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

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How Do I Get My W-2 Form With H&R Block Early Access?

Your W-2 Form is vital for filing your taxes accurately and quickly. Your employer is required to send you the W-2 Form by January 31st every year, or the following business day if that day happens to be either a holiday or a weekend. If sent by mail, you may have to wait.

That’s why the free W-2 Early Access feature from H&R Block is such a useful tool because it allows an electronic copy to be sent, so you’ll be able to get started with your taxes early.… Read the rest

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What is the Correct Home Sale Exclusion Amount for Married Couple?

home sold

As a married couple, you can get around some profit from being taxed. It won’t be for the full amount that typical joint filers file of $500,000, which is based on one spouse’s eligibility for capital gains home sale exclusion.

The profit or gain of the home sale will determine whether you owe or not. You can even sell your home for millions and not owe a dime to the IRS if your profit wasn’t more than the allowable amount. If all the gain is avoidable, you will not owe.… Read the rest

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How to Determine Which Medical Expenses are Tax Deductible

Even if you have the best insurance plan, you still might end up paying medical bills. However, all hope is not lost. You can still get a tax break from your medical expenses that can help reduce your overall medical costs.

Learn what medical expenses are tax deductible.

In 2018, the IRS allowed you to deduct medical expenses that exceeded 7.5% of your adjusted gross income.

Beginning Jan. 1, 2019, all taxpayers may deduct only the amount of the total unreimbursed allowable medical care expenses for the year that exceeds 10% of their adjusted gross income.… Read the rest

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H&R Block Emerald Refund Advance Loan

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?

H&R Block emerald 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

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9 Homeowner Tax Credits and Deductions

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 MortgageHow to claim a homeowners mortgage interest tax deduction.

Most people don’t realize that within certain limits, you can deduct your mortgage interest.Read the rest

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How to Get an Estimate on Your Tax Refund in Five Minutes with H&R Block

H&R Block has become something of an industry disruptor with its simple service that allows you to estimate your tax refund in as little as five minutes.

With the free online tax calculator from H&R Block, you just need your approximate earnings and deductions and you’ll be able to estimate your next tax refund in just five minutes. It will also provide you with information regarding what you can expect to receive the following year.

You’ll need to answer certain questions about health insurance, marital status, age, and the number of dependents you have.… Read the rest

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What You Need to Know About Tax Credits for Electric Vehicles

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 electric carcredits 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

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How To Find My W2 Form Online With H&R Block

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 w2 form early access siteH&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

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2020 Tax Refund Schedule Dates

What are the 2021 Tax Refund Schedule Dates?

Find out what the IRS tax refund schedule dates are this year.The IRS tax refund schedule dates according to the IRS are 21 days for e-filed tax returns and 6 to 8 weeks for paper returns.

So, in theory, if you e-file your tax return, on the starting day of January 27th, 2021, you should receive your tax refund by February 16th or a paper check between March 9th and March 23rd.

When Can You Expect to Receive Your Tax Refund?

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Current Federal Income Tax Brackets Chart

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.

Learn what the current Federal tax brackets are and how they work.

IRS Federal Income Brackets Chart

Here are the new tax brackets and rates organized by filing status:

Tax Brackets Single

Taxable Income Tax Rate
$0 – $9,875 10% of taxable income
$9,876 – $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40,125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount over $163,300
$207,351 – $518,400 $47,367.50 + 35% of the amount over $207,350
$207,351 – $518,400 $156,235 + 37% of the amount over $518,400

 

Tax Brackets Married Filing Jointly or Qualifying Widow(er)

Taxable Income Tax Rate
$0 – $19,750 10% of taxable income
$19,751 – $80,250 $1,975 + 12% of the amount over $19,750
$80,251 – $171,050 $9,235 + 22% of the amount over $80,250
$171,051 – $326,600 $29,211 + 24% of the amount over $171,050
$326,601 – $414,700 $66,543 + 32% of the amount over $326,600
$414,701 – $622,050 $94,735 + 35% of the amount over $414,700
$622,051 or more $167,307.50 + 37% of the amount over $622,050

 

Tax Brackets Married Filing Separately

Taxable Income Tax Rate
$0 – $9,875 10% of taxable income
$9,876 – $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40,125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount of $163,300
$207,351 – $311,025 $83,653.75 + 37% of the amount over $311,025
$311,026 or more $83,653.75 + 37% of the amount over $311,025

 

Head of Household

Taxable Income Tax Rate
$0 – $14,100 10% of taxable income
$14,101 – $53,700 $1,410 + 12% of the amount over $14,100
$53,701 – $85,500 $6,162 + 22% of the amount over $53,700
$85,501 – $163,300 $13,158 + 24% of the amount over $85,500
$163,301 – $207,350 $31,830 + 32% of the amount over $163,300
$207,351 – $518,400 $45,926 + 35% of the amount over $207,350
$518,401 or more $154,793.50 + 37% of the amount over $518,400

Try the tax bracket calculator and see what your tax bracket will be.Try the Free Tax Brackets Calculator

Knowing which tax bracket you are in can help you make better financial decisions.… Read the rest

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The New H&R Block Tax Calculator

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.

See how much your refund is with the H&R Block Tax Calculator.

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

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What is the IRS Mileage Rate Tax Deduction?

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?

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

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Earned Income Tax Credit & Credit Table

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.

Check out the earned income credit table and see how much you qualify for.

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 2020, 2021?

Read the rest

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New Homeowners Tax Credit

homeowner tax creditsIf 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

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Who Can Qualify for The Earned Income Credit?

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.

who can qualify for the earned income 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

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New H&R Block Tax Software Features Available

There are several new additions to the H&R Block software being released this year, including the “drag and drop” feature to easily import relevant tax information into the software from a range of sources.

What New Features Are Available With H&R Block?

This coming tax year, taxpayers are going to have the option of using the “drag and drop” feature. Users will be able to use this new feature to import their tax returns from the previous year into H&R Block.… Read the rest