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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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. Therefore, go look at your finances now and see if you 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.… 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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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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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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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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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?

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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?

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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

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What Are H&R Block Tax Preparation and Filing Prices?

Preparing and filing your taxes can be stressful and intimidating. There are lots of different companies that can help you with the process.

H&R Block tax filing pricesH&R Block is one such tax company that provides you with all the tools and services necessary to help you file your taxes on your own.

But what about the cost of filing your taxes?

How Much Does H&R Block Cost?

Doing your taxes yourself will save you money in most instances.

For example, H&R Block allows its clients to complete their own taxes online and offers a 35% discount for doing so.… Read the rest

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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 of 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 both tax breaks and tax 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

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

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New Tax Refund and Reform Calculator at H&R Block Online

The major tax law changes implemented and the Tax Cuts and Jobs Act (TCJA) has a lot of people worried about what it could mean for their taxes. People have a lot of questions, but we can help prepare you for the things that lie ahead.

tax refund reform calculator

To provide a range of useful tools to their clients, H&R Block has unveiled a brand new feature to help taxpayers understand the impact of the recent tax reform.

You’ll be able to find out your new tax liability.… Read the rest

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How to Get a Fast Tax Refund Date

A tax refund can go a long way in changing the life of its receiver, whether it is saving or paying debts. In fact, in 2019, the total tax refund amount was approximately $2800 for almost 75% of taxpayers receiving a tax refund. So, how to do you get your tax refund faster?

The recommended way is to efile and use direct deposit to get the fastest tax refund.

tax refund dateDuring the last tax season, 58% of taxpayers received their tax refunds through this method.… 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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Try the H&R Block Tax Calculator

If you are wondering how much of a Federal tax refund you will get, it’s possible to estimate the amount of your refund with the H&R Block Tax Calculator.

By entering in your income and answering a few simple questions, you can have a good idea of how much you’ll get back from the IRS.

Today, we are sharing how to estimate your tax refund amount for free.

H&R Block Tax Calculator

Read the rest

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What is Capital Gains Tax on Your Home Sale?

What is the capital gains tax rate on homes and real estate?Are you wondering if you’ll have to pay capital gains tax on your home sale?

What many people do not know is that a large portion of homeowners who sell their homes can avoid capital gains tax on their home sale.

How Much is Capital Gains Tax on the Sale of a Home?

When selling your primary home, you can make up to $250,000 in profit or double that if you are married, and you won’t owe anything for capital gains.… Read the rest