American Tax Service

Helping Americans File Their Taxes

Apr
18

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How to Determine Which Medical Expenses are Tax Deductible

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

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, which 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

Apr
18

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Dependents – The Tax Deductions They Bring

Category: Deductions Tags: , , , , , ,

Kids can be stressful at times, but the good news is they can save your butt during tax time.

dependent tax deductions

Today we are sharing some of the tax benefits that kids and other dependents bring to you.

Dependent Tax Deductions

You 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

Apr
18

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What Home Improvements are Tax Deductible?

Category: Deductions Tags: , , , , , ,

Can I Get a Tax Deduction for Home Improvements?

Although home improvements cannot be deducted, they may be depreciated, which is especially relevant for homeowners and property owners in the business of renting or leasing, as it can impact their income.

home owner tax deductions

This simply means you deduct the expenditure over a period of time ranging from three to two and a half years, depending on the state’s tax laws and any applicable exceptions.

It is essential to keep receipts and records of these projects and consult a tax professional for guidance.… Read the rest

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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Rental Property Tax Deduction

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

Deciding to become a landlord can be highly beneficial for you rental 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

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