American Tax Service

Helping Americans File Their Taxes

Oct
24

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How the Student Loan Interest Tax Deduction Works

Category: Deductions Tags: , , , , , , , ,

Student loan interest can quickly add up. That’s why the Federal government introduced the student loan interest tax deduction to help ordinary students out. If you made interest rate payments on your student loans during the tax year, you could deduct up to $2,500 in interest paid.

student loan interest tax deduction

If you happen to qualify for the 22% tax rate, you have the best deal because your maximum deduction is $550. A few hundred dollars in your wallet for doing very little sounds great, so how can you make sure that you claim the maximum deduction amount available to you?… Read the rest

Oct
13

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Child and Dependent Care Tax Credit 

Category: Credits Tags: , , , , , , , , ,

What is the child and dependent care tax credit?One of the most difficult financial burdens, when you have young children, 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

Oct
13

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Rental Property Tax Deduction

Category: Deductions Tags: , , , , , , ,

Deciding to become a landlord can be highly beneficial for yourental home financially. However, it also comes with a significant amount of work.

As well as the general responsibilities associated with running a rental property, you need to find tenants, pay all your expenses, and ensure you have insurance.

In personal tax terms, renting out a property can complicate the situation. There are rental property tax deductions available to help you out with running your business, though.

Different deductions are available from the IRS.… Read the rest

Oct
13

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Tax Deductions For Mortgage Refinancing

Category: Deductions Tags: , , , , , , , , ,

mortgage interest tax deduction

The largest tax deduction most people can claim on any mortgage is on the interest paid on the loan.

In most cases, mortgage refinance interest is tax-deductible, which means you can take it off your taxable income for that tax year.

But some rules apply.

Rules for Making Tax Deductions on Mortgage Interest

First of all, the loan must be on either your primary residence or a secondary residence. If you take the deduction on a second residence, this can’t be a rental property.… Read the rest

Oct
13

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What Happens if I Cash Out My 401K?

Category: Tax Tags: , , , , , ,

Planning for your retirement is essential. Most people receive a retirement benefit and advice when they join a large company, but even the most stable working conditions can change. Unexpected costs can tempt you to put your retirement savings on hold in favor of access to quick cash.

401 K retirement planCashing out of your 401k is an incredibly risky choice that should only be made under extreme circumstances.

Whether you’re approaching retirement or simply changing jobs, you have probably considered cashing out your 401(k).… Read the rest

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