American Tax Service

Helping Americans File Their Taxes

By

What is the Standard Deduction and When Should You Take It?

The standard deduction is a mechanism that reduces the amount of income that’s eligible for tax. For the current tax year, the standard deduction is worth $12,000 for single taxpayers and $24,000 for married taxpayers filing jointly. If you’re filing as the head of household, it’s worth $18,000.

How Does the Standard Deduction Work?

standard deduction

You can claim the standard deduction even if you don’t qualify for any other tax credits or deductions. Every taxpayer is entitled to it, no questions asked.… Read the rest

By

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

By

Tax Deductions For Mortgage Refinancing

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

By

Dependents – The Tax Deductions They Bring

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.

Dependent Tax Deductions

dependent tax deductionsYou may be able to claim more dependent tax deductions and credits as a family than single taxpayers. However, if you’re not aware of these deductions and credits, you might be losing out on significant tax breaks.

Child Tax Credit

The child tax credit is better than the deductions because your taxes are reduced dollar for dollar.… Read the rest

By

Federal Tax Deductions for Home Renovation

Tax Deductions for Home RenovationThere are many strategies to use house remodeling and upgrades to reduce your taxes.

Remodeling your house is not usually a cost that can be deducted from your federal income taxes. However, there are many techniques that you can utilize for home remodeling and upgrades to decrease your taxes. This includes tax breaks and incentives for remodeling and enhancements made to your house, either when you bought the home or after.

Making Use of Your Mortgage to Make Property Upgrades

An excellent way to reduce home remodeling expenses would be to make the upgrades to the residence when it is purchased.… Read the rest