The Federal Tax Credits Blog

Archive for January, 2011

Question: If i buy a new energy efficient boiler and i get a 1500.00 tax credit, does that mean i get BACK 1500.00?

I’m not really sure about “TAX CREDIT” specifically this new energy star tax credit that is available now. Does that mean I get it back on top of my refund next year? as cash?

Answer: No what it means is you get a credit that is deducted from your taxable income which will lower your tax liability.

Now if you don’t owe or they end up oweing you money then yes the $1,500.00 would be additional to that amount.

2011 tax changes smaller than anticipated, but still can affect you

This year’s major changes are summarized here. Some may impact your 2010 tax return, while others apply for next year’s return.

The American Opportunity Tax Credit Student/Parent Forum

Question: I’d like to see a summary of Republican “socialism” behavior eg. tax credits enacted, stimulus check, military?

I’d like to see a summary of Republican “socialism” behavior eg. tax credits enacted, stimulus check, military (haha)
in light of everything going on right now… i hate when i see people calling Obama a Socialist (trying to make this a bad thing) when many of the policies in play today were “socialistic” in nature and directed by Bush or other republicans. Face it, any government spending for the greater good is socialist, when it becomes an issue is when these are done at the expense of people working hard. If Obama, said – no i am not a socialist, i am a capitalist (the opposite) everyone would be up in arms, because a pure capitalist would let any company or organization die or go under at the later expense to the economy (because they dont care once it happens).
so… specifics on republican social policies please.

we are all americans. we should support and defend our country and our president. not doing so is unpatriotic.

Answer: You left out farm subsidies they never like calling that welfare or socialism and that runs into the billions of dollars.

Axelrod on Way Out: ‘We’ve Learned Some Lessons’

Obama’s chief political strategist and senior adviser leaves the White House with resurgent Republicans in mind Boehner: Cut Up the Credit Cards YOU DECIDE: Find the Cuts

Home-buyer Tax Credit for the Military Featured on Live 5 News

Question: If you receive a rebate every year from Fed Tax return, does the 8,000 tax credit really matter?

If I purchase a new home this year, will this tax credit help me if I get a rebate back every year? I only pay round 6,100 in fed taxes each year.
Example: If I owed 6,100 paid 7,100, how much would I get back?

Answer: Yes. The $8000 is in addition to any other refund that you normally would receive.

Money available to install solar hot water systems

Good news for New Hampshire residents mulling over the idea of buying solar powered hot water systems: a new mix of federal and state rebates and tax credits.

Anaheim, CA Mobile Home For Sale. Great Opportunity To Own A Home For Less Than $50K

Question: I bought a new Prius in 2009, so what do I need to give my tax man?

Isn’t there a tax credit for new cars? What proof do I need to show of this purchase?

Answer: Bring the invoice from the dealership.

The sales tax is deductible.

There used to be a Hybrid tax credit but I believe that it expired on the Prius.

Levins push electric car credit

Following on President Obama’s State of the Union vow to put 1 million electric vehicles on the road by 2015, U.S. Rep. Sander Levin on Wednesday introduced legislation that would boost the production and purchase of electric vehicles by expanding a federal tax credit.

Corvus Cars

Question: What is the reason for deductions and credits?

I am just wondering why we have so many deductions and credits in our tax system. Wouldn’t it be much simpler for everyone (businesses, the public and the government) if we all just paid our share and we had fewer deductions and loopholes? I understand some of the deductions we give such as deductions for children (obviously a family should pay less than a single guy only supporting himself), and some other deductions which offer incentives for doing things that are beneficial (such as tax breaks to green energy companies to research new energy). But why do we have SO MANY deductions and credits?

Answer: While I agree that the tax code is extremely complex, it is not because of the deductions and credits.

Deductions and credits serve two purposes. First, they do encourage behavior that the government support. Second, they stimulate the economy. If we paid more money to the government, we would have less money to spend on things such as housing. Without a deduction for mortgage interest, people would be less inclined to buy houses.

As far as supporting large families, taxpayers only get credits for the first two children they have. They get dependency exemptions, but without them people would go broke. Furthermore, families with large incomes get exempt from lots of the deductions and credits. Notice at the bottom of schedule A where you have to determine if your deductions are limited. These deductions and credits do help the people they are intended to.

The only reason the tax code is so complicated is because people try to beat the system. They attempt the breaks allowed by the government to benefit themselves even if they were not originally intended to. If you really look at each deduction and credit, they are all useful.

MEDC’s high-tech business tax credits, film incentives would be phased out under Rick Snyder plan

Film industry incentives and high-tech business tax credits distributed by the Michigan Economic Development Corp. would be eliminated as part of Gov. Rick Snyder’s proposal to restructure the state’s business tax structure, according to a Detroit News report…….

Business Energy Investment Tax Credit