American Tax Service

Helping Americans File Their Taxes

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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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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

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What Home Improvements are Tax Deductible?

home owner tax deductionsCan I Get a Tax Deduction for Home Improvements?

Although home improvements cannot be deducted, they may be depreciated.

This simply means you deduct the expenditure over a period of time ranging from three to two and a half years.

To be eligible for depreciation on home renovation and improvement expenses, you must utilize a part of your house for purposes other than a personal residence.

You Can Use Your Mortgage to Improve Your Home

mortgage interest tax deduction

If you’re buying a home, 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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What is Capital Gains Partial Exclusion for Home Sale?

What is the Capital Gains Exclusion?

The capital gains exclusion is an IRS tax provision that allows you to exclude a certain amount of your capital gains from your taxable income. For example, if you have a capital gain of $10,000, you can exclude $3,000 of it from your taxable income.

Capital gain on a home sale is the difference between the selling price of your home and the original purchase price, plus any improvements you made to the home. The capital gains tax on your home can have a big effect on how much profit you ultimately bring in from selling your home and/or property.… 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 2019, 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