Are you building a new home?
There are tax breaks available for people in this situation. They come in the form of tax deductions and tax credits. A credit is used to reduce the amount you pay, and a deduction reduces your total taxable income.
Here are some of the tax write-offs available to you now.
Did You Pay Interest on a Construction Loan?
If you took out a construction loan to build your home, then chances are you paid interest on that loan.… Read the rest
The entire tax code was reformed under President Trump’s Tax Cuts and Jobs Act (TCJA). The TCJA has changed many things about the Child Tax Credit. These new rules apply to the new tax season.
How Much do I Get Back for a Child?
Under the TCJA, the Child Tax Credit saw a substantial increase to $2,000 per qualifying child. Up to $1,400 of this amount is refundable, depending on your income. This has doubled the previous amount, and the Child Tax Credit was previously only refundable if you were also claiming the Additional Child Tax Credit.… Read the rest
Education tax credits are an easy way to help cover some of the costs of education. If one of your dependents is a student, you’ll be able to take advantage of one of two educational tax credits available for this upcoming tax year.
They’re much better for savings than a standard deduction in tuition costs. Credits cut your tax bill dollar-for-dollar. So, if you’re want to claim education tax credits, read about them and see which credit offers the best savings for you.… Read the rest
One of the most beneficial and popular federal tax credits is the Child Tax Credit. This is a nonrefundable tax credit, and it’s worth up to $2,000 per qualifying child.
Who is Considered a Qualifying Child?
The IRS considers a qualifying child to be a child that meets all of the criteria below:
- Under the age of 17 at the end of the year
- Has resided with you for more than half of the year
- Is your dependent on your federal taxes
- Is a US citizen and has a valid SSN
- Is a relative such as your child, sibling, stepchild, stepsibling, foster child, legally adopted child, or a descendant from any of the previously mentioned individuals.
… Read the rest
Tax season is going to be here before you know it. Therefore, now is the time to ensure that you have completed all of the energy-efficient upgrades to your home.
Having an energy-efficient home will save money on your bills and pay less money in taxes. Learn how you claim home energy tax credits if you qualify.
Non-Business Energy Property Credit
You can get a 10% credit for your energy-efficient improvements. Things that fall under this category include:
- Water heaters
- Electric heat pumps
- Central air conditioners
- Natural gas, propane, or oil water heaters
- Qualified oil furnaces
- Qualified oil hot water boilers
- Some air circulating fans
- Insulation that reduced heat loss or gains
- Exterior windows, skylights, or doors
- Storm windows and doors
- Solar panels
- Metal and asphalt roofs that reduce heat loss or gain
Residential Energy Efficient Property Credit
This energy tax credit will allow you to have a 30% credit for the alternative energy equipment that you have had installed.… Read the rest