Are you currently claiming all of the tax credits available to you? It would appear not guys! Research shows that there is assortment of credits that apply to some of the less popular activities, like installing energy saving modifications to your home of for the purchase of hybrid cars.
First off, let’s look into Mortgage Interest Credit. If you have recently received a things called a mortgage credit certificate, you could well be eligible for the Mortgage Interest Credit. There are programs available in the US that let taxpayers to finance the purchase of their home by using a mortgage credit certificate.
If you itemize your Schedule A deductions, you are required to reduce the amount of deductible mortgage interest by the amount of the credit thay you are claiming. This is true, even if a portion of the Mortgage Interest credit is required to be be carried over to the next year. This credit can be obtained by filling out IRS Form 8396 and is non-refundable. You should submit this along with your 1040 tax return.
Next, let’s look into the word of health coverage. The health coverage tax credit in the US is designed to help pay for health insurance for people who have lost health cover because of foreign business competition.
The health coverage tax credit is excluded for those receiving Medicare or military health benefits. Also excluded are those in prison. Eligibility for this credit is also contingent upon the use of an IRS qualified health plan.
The third thing we are going to look at is Residential Energy Tax Credits. In the US, there are two credits for improving your home’s overall energy efficiency. If you avail of the Non-business Energy Property Credit, you will receive the lesser of 30% of the cost of the improvements or $1,500 for changing exterior windows including skylights ,adding insulation, or adding exterior doors or roofing. You can also make improvements in your energy efficiency by replacing such things as a water heater or air conditioner if they are not energy efficient.
Residential Energy Efficient Property Credit is the tax credit for producing your own wind energy or adding solar panels to your property. This credit for Residential Energy Efficient Property Credit is for nearly one third of the total cost of the equipment for unlimited amounts. The only exception to this is for fuel cells. Fuel cells have a maximum credit of $500. US Taxpayers can claim the Residential Energy Efficient Property Credit by completing IRS Form 5695.
Especially in today’s economic hard times, it is important to fully evaluate possible credits to which you may be entitled. There are many more provisions that we have not covered here, so do your research before you adjust your tax return. Consult your tax advisor or visit the IRS website for more information on tax credits.