While preparing your taxes this year you may want to consider some additional tax credits that president Obama created with the American Recovery and Reinvestment Act of 2009. The AARA featured an energy tax credit if you made certain energy star improvements to your home last year. While many people believe that these credits are available on all energy star appliances, this could be further from the truth.
Only select items are eligible for the energy tax credit. A complete list of eligible tax credits is available on the energy star website. Here are a few highlights of some items that are eligible for the tax credit.
Windows, doors and skylights that were purchased and installed last year may be eligible for a tax credit depending on their energy rating. Check to make sure that they fall within the specifications before claiming this credit. Remember that if you paid to have your new windows, doors, or skylights installed you are not able to take credit for the installation cost.
A new roof will not only save you money on your cooling bill but it will also increase the amount that you receive back from Uncle Sam. By replacing your roof with an asphalt composite or metal roof made of an approved material you can put up to $1,500 back into your pocket thanks to the credit available.
Did you replace that old rusted hot water heater last year? If you did, know what you put in your home. If you picked an energy star hot water heater with an energy rating greater than or equal to the guidelines set by the tax credit, you may be well on your way to writing off up to $1,500 of the cost of your heater.
There are several other energy star tax credits available for the 2009 tax year. If you would like more information on the topic, check out the energy star website for a complete list. It is important to remember that you can only claim up to $1,500 for all of the energy star eligible products that you purchased.
What do you plan to do with your tax return this year? Healthy Financial Habits wants to know. We have created a poll located at the bottom right of this page. Here you are able to vote to let us know how you are going to spend your money and also view the poll results.
Author: Mike Smitt