American Tax Service

Helping Americans File Their Taxes

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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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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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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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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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The Child Tax Credit & Additional Child Tax Credit

One of the most beneficial and popular federal tax credits is the Child Tax Credit. This is a nonrefundable tax credit, and it’s worth up to $2,000 per qualifying child.

Who is Considered a Qualifying Child?

child tax credit additionalThe IRS considers a qualifying child to be a child that meets all of the criteria below:

  • Under the age of 17 at the end of the year
  • Has resided with you for more than half of the year
  • Is your dependent on your federal taxes
  • Is a US citizen and has a valid SSN
  • Is a relative such as your child, sibling, stepchild, stepsibling, foster child, legally adopted child, or a descendant from any of the previously mentioned individuals.
Read the rest

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Home Energy Tax Credits

Tax season is going to be here before you know it. Therefore, now is the time to make sure that you have made all of the energy-efficient upgrades to your home.

By having an energy efficient home, you will save money on your bills and pay less money in taxes. Learn how you claim home energy tax credits if you qualify.

Non-Business Energy Property Credit

home energy tax creditsYou can get a 10% credit for your energy efficient improvements. Things that fall under this category include:

  • Water heaters
  • Electric heat pumps
  • Central air conditioners
  • Natural gas, propane, or oil water heaters
  • Qualified oil furnaces
  • Qualified oil hot water boilers
  • Some air circulating fans
  • Insulation that reduced heat loss or gains
  • Exterior windows, skylights or doors
  • Storm windows and doors
  • Solar panels
  • Metal and asphalt roofs that reduce heat loss or gain

Residential Energy Efficient Property Credit

This energy tax credit will allow you to have a 30% credit for the alternative energy equipment that you have had installed.… Read the rest

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Tax Credits for Solar Energy

One of the most valuable tax credits available to homes and businesses is the solar energy tax credit. It’s a tax credit that applies to solar-powered hot water and panel systems. It’s worth up to 30% of the total cost of purchase and installation.

At the end of the year 2015, Congress extended this credit for four years. That means it’s currently possible for you to claim the solar tax credit until the end of 2019 in its current form. It will gradually phase out until 2022 when homeowners can no longer claim it, and it’s only worth 10% to businesses.… Read the rest

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What is EIC/EITC and Who Qualifies?

The EIC/EITC is known as the Earned Income Tax Credit. This tax credit is available for those who have a low or moderate-income.

EIC, Earned Income Tax CreditThe amount that you receive for this credit is determined based on the filing status you use and your salary for the year.

Those who qualify pay less in federal taxes and can claim the earned income credit when they file their tax returns.

Basic Requirements to Be Eligible

  • You have to have a qualifying child, and they must have a social security number
  • You cannot file married or file separately
  • Your investment income should be no higher than $3,600
  • You have to be a U.S.
Read the rest

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Child and Dependent Care Tax Credit 

What is the child and dependent care tax credit?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

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New Tax Credits and Deductions

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

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Tax Credits for New Home Construction

Are you building a new home?

There are tax breaks available for people in this situation. They come in the form of tax deductions and tax credits. A credit is used to reduce the amount you pay, and a deduction reduces your total taxable income.

Here are some of the tax write-offs available to you now.

Did You Pay Interest on a Construction Loan?

new home construction

If you took out a construction loan to build your home, then chances are you paid interest on that loan.… Read the rest

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How Much Do You Get Back in Taxes for a Child?

how much do I get back in taxes for a child

The entire tax code was reformed under President Trump’s Tax Cuts and Jobs Act (TCJA). The TCJA has changed many things about the Child Tax Credit. These new rules apply to the new tax season.

How Much do I Get Back for a Child?

Under the TCJA, the Child Tax Credit saw a substantial increase to $2,000 per qualifying child. Up to $1,400 of this amount is refundable, depending on your income. This has doubled the previous amount, and the Child Tax Credit was previously only refundable if you were also claiming the Additional Child Tax Credit.Read the rest

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Best Education Tax Credits

Education tax credits are an easy way to help cover some of the costs of education. If one of your dependents is a student, you’ll be able to take advantage of one of two educational tax credits available for this upcoming tax year.

education tax credits

They’re much better for savings than a standard deduction in tuition costs. Credits cut your tax bill dollar-for-dollar. So, if you’re want to claim education tax credits, read about them and see which credit offers the best savings for you.… Read the rest

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What You Need to Know about the New Child Tax Credit

The original child tax credit, known as the CTC, was first introduced back in 1997, before becoming available to claim in 1998. In the beginning, this was a simple nonrefundable credit for $400, which applied to each qualifying child if they were under the age of 17.

child tax credit

There have been many changes over the last 20 years, with qualifying children being worth a tax credit of $1000 per child. This was refundable for taxpayers who had at least $3,000 of earned income.… Read the rest