By making energy-efficient improvements to your home.
It will reduce your energy costs, as well. Take the tax credit for energy-efficient windows or doors, air conditioners or furnaces, or other energy-saving improvements on your tax returns so far it goes through the year 2016.
It pays off even better than in the past.
Some folks in the past had gained a maximum credit of $1,500.00 under the American Recovery and Reinvestment Act of 2009.
Improvements made by homeowners had given them an eligibility for a credit equal to 30 percent of the cost, up to $1,500.00.
The taxpayer then had to pay $5,000 on energy efficiency improvements to get the maximum credit.
Previously the maximum was $500.00
Homeowners can claim whatever the the new creditis even if they had taken the old one.
Qualifying improvements had to have been made during a previous year, to be able to claim them the following year.
"Residential Energy Efficient Property Credit
This tax credit helps individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, solar electricity equipment and wind turbines. The credit, which runs through 2016, is 30 percent of the cost of qualified property. There is no cap on the amount of credit available, except for fuel cell property. Generally, you may include labor costs when figuring the credit and you can carry forward any unused portions of this credit. Qualifying equipment must have been installed on or in connection with your home located in the United States; fuel cell property qualifies only when installed on or in connection with your main home located in the United States."
Limits on individual items are gone except for fuel cell property, and there is no income limit for the credit.
Be careful as the standards are now higher in the new law than those for back in 2007. The IRS warns that not all products carrying the Energy Department’s Energy Star label qualify.
The manufacturer has to certify that the product qualifies. It would be best to keep a copy of the certification statement.
Alternative energy users could reap bigger benefits with a bigger tax credit.
Home owners who install solar water heaters, geothermal heat pumps or small wind turbines, can get a 30 percent tax credit with no maximum. Site preparation and installation costs also apply. File form 5695 to claim the credit.
Plug in type electric vehicles can get new tax credits as well with credits ranging from $2,500.00 to $15,000.00, depending on the battery, the kind of vehicle and its weight.
The first 60,000 hybrid or certain alternative energy cars sold by a manufacturer will qualify for tax credits.
Some car models were available that could still apply. For past models like the year 2009, manufacturers that had hybrids still eligible for the credit were Cadillac, Chevrolet, Chrysler, Dodge, Ford, GMC, Mazda, Mercury, Nissan and Saturn.
2010 model year cars that applied are hybrids manufactured by Cadillac, Chevrolet, Ford, GMC, Mercury, Mercedes-Benz and Nissan.
This car availability info is obviously time sensitive so check before giving it another thought.
As always check with the IRS for the latest changes in the laws www.irs.gov/
A lot of people break out in a nervous sweat and get the shakes when it comes time to file their taxes.
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Some folks just file as fast as they can to get it over with. They loose out on a bunch of legitimate deductions and allocations that could have saved them a ton of money at tax time.
I would rather be getting a nice tax refund than pay the IRS a lot of money. Pay attention to the details.