Category Archives: Finance

Tax Credits for Electric Vehicles 2019, 2020

Traverse City MI 8-3-2019 – Aside from contributing towards a healthy and stable environment, taxpayers who have made a green-conscious choice for their cars will also benefit from some valuable tax credits – The Electric Vehicle Tax Credits. As valuable as these tax credits are, there are some confusing rules regarding how they work. In a new guide, The American Tax Service answers all the common questions taxpayers might have about tax credits on plug-in electric vehicles.

The electric vehicle tax credit is non-refundable and is worth up to $7500 in which case your tax bill must be worth $7,500 or more. The tax credit also applies if you purchased the electric vehicle and not lease it. The size of the car battery is another factor that can determine how valuable the credit is.

Aside from being the registered owner of the vehicle, other terms apply to the Electric Vehicle Tax Credits. The American Tax Service has listed all the terms and conditions in the guide. With increasing sales volume on electric cars, the government has already started phasing out electric vehicle tax credits. While there is no set date for when the tax credit will expire, each electric vehicle manufacturer can set sales limits to reduce or completely phase out the tax credit.

There are dozens of programs run by states, and even regions that offer tax credits on electric cars and other vehicles that take advantage of alternative fuels. The tax blog advice people who would like to purchase an electric vehicle to look up ‘Plug in America’ to get information about all the different plug-in car rebates, credits, and deductions that are open to them. Also, it is best to file your taxes online with H&R Block this tax season because of all of the tax benefits that you will receive.

For more information about the Electric vehicle tax credits, please visit, https://americantaxservice.org/tax-credits-for-electric-vehicle-car/

About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.

Contact Information
Frank Ellis
American Tax Service
945 East 8th Street Suite A
Traverse City, Michigan 49686
Email: webmaster@americantaxservice.org
Website: http://americantaxservice.org

The Standard Deduction and When You Should Take Advantage of it

Traverse City MI 8-3-2019 – Every taxpayer is entitled to claim standard deductions on their taxes but they are left with a choice to make. Taxpayers can either take the standard deduction or itemize their tax return. They can’t take both. So, what is the right choice? How does the standard deduction work and when can taxpayers claim it?

The standard deduction reduces the amount of taxable income and is very easy to claim. In recent times, the standard deductions for all filing statuses have doubled. And for the current tax year, the standard deduction is worth $12,000 for single taxpayers, $24,000 for married taxpayers filing jointly, and $18,000 if filing as the head of a household. The standard rate, however, gets smaller if someone else claims you as a dependent.

Taxpayers who take the standard deductions will not be able to take other tax deductions like the medical expenses, mortgage interest, and donations to charity. As a result, it is better to look into itemizing your returns to see if you can claim a larger deduction. If itemizing leads to a higher deduction amount then it should be the way to go. But if the difference is not significant, then going for the standard deduction will be a smarter move as it will save you a lot of time and effort. Also, you will be less likely to get audited.

American Tax Service recommends using the H&R Block online tax software to itemize deductions. By answering a couple of questions, the software will be able to identify what type of tax credits will give the biggest tax refund. So, whether you take the standard deductions or itemized deductions, you are sure you have made the right choice.

For more information about the standard deductions, please visit, https://americantaxservice.org/what-is-the-standard-deduction

About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.

Contact Information
Frank Ellis
American Tax Service
945 East 8th Street Suite A
Traverse City, Michigan 49686
Email: webmaster@americantaxservice.org
Website: http://americantaxservice.org

All About the W-4 Withholding Calculator for 2019, 2020

Traverse City MI, 7-22-2019 – With the many changes made to the tax code by the IRS, it has now become imperative to use a W4 withholding calculator to perform a paycheck checkup. The reason for this is to ensure that you have enough to pay for your tax bill from your paycheck when your payment is due. Online tax filing blog, File My Taxes Online offers a lot more insight on how to use the W-4 Withholding Calculator in its latest post – W-4 Withholding Calculator for 2019, 2020.

It is better to have more than enough saved up from your paycheck than be short of funds when it is time to pay your tax bills. This is the main reason taxpayers must use the W-4 Withholding Calculator to determine how much to withhold from their wages. Whether you currently have a job or you are living on a pension fund, the calculator comes in handy. It can be used to fill out the W-4 form as well as the W-4P, which are then submitted to your employers.

To make use of the calculator, you will need to provide an estimate of your income and your eligibility for the Earned Income Tax Credit and the Child Tax Credit. The results offered by the calculator will be solely based on the accuracy of the information you have provided. And so it is best to use the calculator again when any of the figures you have inputted changes. The calculator does not require any of your details such as your social security number or your name and address and does not save its results.

Although the W-4 Withholding Calculator can easily help you calculate how much of your paycheck should be withheld for tax purposes, it comes with its limitations. The calculator does not factor in long-term capital gains or any social security benefits that are taxable and is not recommended for taxpayers who have a complex tax situation.

File My Taxes Online recommends that taxpayers who alter their withholding in the middle of the financial year should review their limits as it could impact their tax situation the following year. For more information about the W-4 Withholding Calculator, please visit https://filemytaxesonline.org/w-4-withholding-calculator

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About Frank Ellis

Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.

Contact Information
Frank Ellis
File My Taxes Online
945 East 8th Street Suite A
Traverse City, Michigan 49686
Email: webmaster@filemytaxesonline.org
Website: http://filemytaxesonline.org

Self-Employment Tax – How to File in 2019, 2020

Traverse City, MI – There are so many benefits to being self-employed – making money on your own terms, being your own boss and living the life that you dream of. But when it comes to filing your taxes, there is just one little disadvantage to being self-employed and that is if you are already used to filing the regular W-2 forms, there won’t be a need for it any longer. You will need to file self-employment tax forms. So what is the self-employment tax and what are the rates for 2019. A tax information blog, National Tax report has just published a new guide to help self-employed people easily figure out what the self-employed tax is, what the rates are for the tax year 2019, as well as the deductions that can be taken from the self-employment tax.

For the tax year 2019, the self-employment tax rate is set at 15.3% on the first $132,900 of net income. And should the net income exceed $132,900, there will be a charge of 2.9% on the excess. The self-employed tax rate is broken into two parts: Social Security tax and Medicare. Social security takes a majority part of the self-employed tax and is set at 12.4% while Medicare balances it up at 2.9%.

Self-employed taxpayers are expected to pay both the employee and employer parts of these taxes. But they will be able to claim back half of their self-employment tax contributions. One other deduction self-employed taxpayers will find useful is the Self-employed insurance. This offers full deductions on the cost of premiums on medical, dental, and long-term care insurance and can cover the taxpayer’s spouse, dependents including adult children up to the age of 27. Other deductions available to self-employed taxpayers are home office, phone bills, Internet bills, business mileage, and meals.

To file the self-employment tax, taxpayers will need to use the Schedule SE, which is a part of Form 1040. To help determine how much you need to pay in self-employment taxes and how much you’ll be able to claim in credits and deductions, it is best advised to use a self-employed tax calculator from TurboTax. This will ensure you get the most of your tax credit and deductions.

For more information, please read the full post from National Tax Report here, https://nationaltaxreports.com/how-much-will-i-owe-self-employment-taxes/

About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.

Contact Information
Frank Ellis
National Tax Reports

945 East 8th Street Suite A
Traverse City, Michigan 49686

contact@nationaltaxreports.com
Website: http://nationaltaxreports.com/

All about the Six Schedules of the New Form 1040 for 2019, 2020

Traverse City MI – In a bid to simplify the tax filing process for many Americans who have quite a very simple tax affair, the Internal Revenue Service introduced a new and smaller Form 1040. This change saw many of the lines of the previous form moved to six new schedules. What are these new schedules and who are they for? Tax blog, American Tax Service provides answers to all these questions in its latest post.

The first schedule, the Additional Taxes and Adjustments to Income is used to report certain types of additional income or adjustments. This could include, capital gains, wins from gambling, unemployment compensations, etc. Student loan deductions must also be entered into this schedule.

The second schedule is seldom used as it pertains to only a few sets of people who pay the alternative minimum tax (AMT).

Schedule 3 is for Nonrefundable Credits and it applies to all nonrefundable credits apart from the child tax credit, or any other dependency-based tax credits.

Other federal taxes like the self-employment tax, household employment taxes and any additional taxes on your retirement plans can be reported using Schedule 4.

Should you decide to claim certain refundable credits or report any withheld payments, then Schedule 5 will come in handy.

The sixth and last schedule is used only if you have a foreign address. It is mostly used by Americans living and working abroad. This schedule allows a third-party file taxes on your behalf.

The American Tax Service sums up its post by recommending that taxpayers file their taxes online with the H&R Block. The H&R Block is up to date with the latest IRS tax forms and schedules and it helps taxpayers find their w2 form and file their taxes online.

To find out more about the IRS 1040 Form and the six new schedules plus how to get a 35% discount for filing your taxes online with the H&R Block, please visit, https://americantaxservice.org/the-six-new-form-1040-schedules/

About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.

Contact Information
Frank Ellis

American Tax Service
945 East 8th Street Suite A
Traverse City, Michigan 49686

Email: webmaster@americantaxservice.org
Website: http://americantaxservice.org/