Keep More Green With Energy Efficient Tax Credits for 2014
We have now avoided the Fiscal Cliff. An now thanks to the American Taxpayer Relief Act (ATRA) we have more credits such as the ones relating to energy –efficient improvements to your home to help you pocket even more of your hard earned income. So, let’s take a look at the improvements that qualify.
Qualifying Improvements under the Residential Energy Efficient Property Credit
· Solar Electric (Photovoltaic Panels)
· Solar Water Heater
· Small Wind Energy (Windmills)
· Geothermal Heat Pumps
· Fuel Cells
If you have any of the above mentioned items in your main home or vacation home (fuel cell must be in your main home) you may be eligible for a 30% energy tax credit. Fuel cells, however, are limited to 30% of the cost up to $500.00. These improvements are also applicable to homes that are being constructed into a new home.
However, before you install these items into your home make sure that you are aware of the differences between tax credits and deductions. Basically, credits are like a discount. For example, if you pay $10,000 on a solar panel installation Uncle Sam will provide you with a $3000 tax credit.
The next group of home improvements is under the Nonbusiness Energy Property Credit. It is limited more than the previous credit that we discussed. It caps at $500. The following energy efficient home improvements fall under this tax credit:
· Insulation or any system designed to reduce heat loss
· Exterior doors
· Metal roof that reflects heat
· Exterior windows
The next category of home improvement energy credits are the residential energy property costs. The home improvements that fall under this category are:
· Central air conditioners
· Gas, propane/oil furnaces, and natural gas, propane and hot water boilers that qualify.
· Advanced main circulating fans for systems.
The good news is you do not have to worry about which purchases are going to fall into what tax category. Turbo Tax does all of this for you.
Keep Your Receipts Handy
Daylight Savings Time is here and you are now able to save more money by limiting your electricity use. However, if you have already made energy efficient improvements to your home make sure you keep your receipts handy for tax time so you can save more money for being green while keeping more green in your pocket.
The non-business energy property credits will be valid through 2013, so if you have not gotten your credits make sure you do so this year. This is the last chance that you are going to get to get a tax refund for saving on your energy bills.
Always remember that when it comes to your taxes Turbo Tax has your back. Turbo Tax stays in tune with the newest tax laws so they can answer all of your questions and concerns about energy efficient tax credits. You can also use the free refund calculator to estimate how much your refund is going to be.
We have now avoided the Fiscal Cliff. An now thanks to the American Taxpayer Relief Act (ATRA) we have more credits such as the ones relating to energy –efficient improvements to your home to help you pocket even more of your hard earned income. So, let’s take a look at the improvements that qualify.
Qualifying Improvements under the Residential Energy Efficient Property Credit
· Solar Electric (Photovoltaic Panels)
· Solar Water Heater
· Small Wind Energy (Windmills)
· Geothermal Heat Pumps
· Fuel Cells
If you have any of the above mentioned items in your main home or vacation home (fuel cell must be in your main home) you may be eligible for a 30% energy tax credit. Fuel cells, however, are limited to 30% of the cost up to $500.00. These improvements are also applicable to homes that are being constructed into a new home.
However, before you install these items into your home make sure that you are aware of the differences between tax credits and deductions. Basically, credits are like a discount. For example, if you pay $10,000 on a solar panel installation Uncle Sam will provide you with a $3000 tax credit.
The next group of home improvements is under the Nonbusiness Energy Property Credit. It is limited more than the previous credit that we discussed. It caps at $500. The following energy efficient home improvements fall under this tax credit:
· Insulation or any system designed to reduce heat loss
· Exterior doors
· Metal roof that reflects heat
· Exterior windows
The next category of home improvement energy credits are the residential energy property costs. The home improvements that fall under this category are:
· Central air conditioners
· Gas, propane/oil furnaces, and natural gas, propane and hot water boilers that qualify.
· Advanced main circulating fans for systems.
The good news is you do not have to worry about which purchases are going to fall into what tax category. Turbo Tax does all of this for you.
Keep Your Receipts Handy
Daylight Savings Time is here and you are now able to save more money by limiting your electricity use. However, if you have already made energy efficient improvements to your home make sure you keep your receipts handy for tax time so you can save more money for being green while keeping more green in your pocket.
The non-business energy property credits will be valid through 2013, so if you have not gotten your credits make sure you do so this year. This is the last chance that you are going to get to get a tax refund for saving on your energy bills.
Always remember that when it comes to your taxes Turbo Tax has your back. Turbo Tax stays in tune with the newest tax laws so they can answer all of your questions and concerns about energy efficient tax credits. You can also use the free refund calculator to estimate how much your refund is going to be.