Have you overlooked a small tax credit?
The IRS offers two types of tax credits to homeowners in 2015 and 2016: the Residential Energy Efficiency Property Credit and the Nonbusiness Energy Property Credit. The first applies only to solar and renewable energy systems and is not discussed in this article.
The second type of tax credit applies to home improvement materials. The tax credit is 10% of the cost of the energy efficient improvement materials but subject to limitations. Maximum ‘lifetime’ total credit is $500. Maximum credit for one type of improvement is: $200 for windows, $150 for furnace, $50 for a furnace fan, $300 for other.
This tax credit is one of more than 50 tax saving opportunities often missed by taxpayers who file their own income tax return. Whether you file your own tax return or have someone else prepare it, it always makes sense to follow the procedures typically used by larger CPA firms preparing tax returns for their affluent clients: have the tax return independently reviewed.
I offer a no-risk review of individual and business income tax returns to check for tax-saving opportunities that you might have missed. There is a fee for this service only if a savings is realized. The fee is based on the amount of savings to ensure that this is a profitable arrangement.