The Federal Tax Credits Blog

Question: I have a question about tax credits. We just had replacement windows installed,?

and were told that we qualified for the $1500 federal tax credit. We assumed we’d get $1500 back when we filed our taxes next year. However, I recently found out that unless you owe money at tax time, in other words, underpaid during the year, you will not get anything back. Usually we overpay during the year, and get back about $2000. I just had this idea, what if I changed our federal exemptions, so we’d pay alot less until the end of the year (more in our paychecks each week), then at the end of the year, we may get back the $1500, and have paid less during the year. Does that make sense?
The windows cost $8,000. We own a two family house.

Answer: It doesn’t matter whether or not you owe, it matters whether or not you have a tax liability.

The credit is non-refundable, which means it lowers your tax liability, but if your tax liability reaches $0, you don’t get the remaining credit refunded to you.

Example, lets say you qualify for the full $1500 credit. Your tax liability comes out to $1200 and you had $3000 withheld during the year. Without the credit you’d get $1800 refunded to you ($3000 paid minus $1200 tax liability). Now, when you apply the $1500 credit, your tax liability will be reduced to $0 and you’ll get all of your $3000 withholding back, but you lose the extra $300 worth of credit. The net result is a tax refund that is $1200 bigger than it would have been without the credit.

If your tax liability is already $0 then you won’t benefit from the credit at all. If your tax liability is more than $1500 before the credit, then you’ll benefit by $1500 by getting a bigger refund or owing less at tax time.

Keep in mind that the credit is 30% of the cost of windows, not including installation costs, so you would have to spend $5000 or more on the windows (not including installation) to qualify for the full amount.

Realty InSites: Bush tax cut extension includes property-related conditions

Congress’ passage of year-end legislation extending the Bush-era tax cuts made holiday headlines. But imbedded in the HR4853 Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 are a few under-reported provisions of import to homeowners, builders, commercial property owners and/or investors.

The Window Gallery-Federal Government Tax Credit for Windows

Question: OPINIONS: Traffic and parking Tickets: Are the financial or legal?

I am working on organizing all my documents into a folder structure that will easily let me find anything at later time.

These are some of the folders:

EducationDiplomas
EducationResearch
—————
FinancialBank & CC StatementsCapital 1
FinancialBank & CC StatementsChase
FinancialCredit Reports
FinancialDisputes
FinancialInsurance
FinancialLoans
FinancialPay Stubs2009
FinancialPay Stubs2010
FinancialReceipts & Invoices
FinancialTaxes
—————
FoodMenus
FoodRecipes
—————
LegalAccident InfoMotorcycle Accident 07.09Pictures
LegalAccident InfoMotorcycle Accident 07.09Police Report
LegalTickets
—————
MedicalHealth Insurance
MedicalRecordsHospitalMotorcycle Accident 09
—————
SentimentalCards
SentimentalLetters

So, what do YOU think? What category should parking and traffic tickets go under. Is it a legal document? or financial? If only I can somehow use tags like Gmail…

Answer: Legaltickets – if you are going to pay it

Financialdisputes – if you are going to contest it.

Why file it when you can just pile it?

Do you have to file a tax return?

You must file a federal income tax return if your income is above a certain level, which varies depending on your filing status, age and the type of income you receive.

Tax Tips: Tax Forums – 2010

Question: Will I pay taxes or will I get $ back? Here is my situation.?

I work as a phone sex operator out of my house & they don’t send Me any tax forms in the mail showing how much I made. I am basically a contractor. So I made about $4300 this year with no taxes taken out. I bought my first home, a condo, in February which I paid $3798.00 in interest in 2008. Anywho, I spent $4500 in upgrades on my new condo. I paid $600.69 in school loan interest. Will I have to pay or will I get money back? (and yes I know I know, I missed the 7500 tax credit deadline, bummer)

PEOPLE WITH EXPERIENCE, ANSWER ONLY!

Answer: If that’s your only income for the year you won’t owe any income taxes but you will owe around $606 in self-employment taxes.

U.S. Nov. consumer credit up $1.35 bln

WASHINGTON (MarketWatch) -U.S. consumers increased their debt for the second straight month in November, the Federal Reserve reported Friday. Total seasonally adjusted consumer debt increased $1.35 billion, or a 0.7% annualized rate, in November to $2.402 trillion. This is the first two month gain in consumer credit since June and July 2008. Economists had expected a increase. October consumer …

Buying a Home in California

Question: once the $8,000 tax credit and mortgage rates rise, where will home prices go then?

i wouldn;’t be surprised if obama does another “extension”

What happens when the tax credit goes and rates got 7%???
ed- why don’t you try answering the question?????

Answer: Home prices will go up and we will be in the same shape as before..

California’s Brown unveils “painful” budget cuts

California Governor Jerry Brown on Monday unveiled a budget that includes $12.5 billion in what he called “painful” cuts to state worker pay, healthcare, welfare and higher education to help close the state’s $25.4 billion budget deficit over the next 18 months.

Tax Credit Extension – The Rian Group

Question: Metal roof tax credit?

I had a metal roof put on my house in 2009 that meets the energy star qualifications for the $1,500 tax credit. Has anyone else filed for this and can tell me what I need to do? I tried to research online and it looks like maybe you need to file a separate form #5965? When I brought the form up online about 2 wks ago, It showed other items for energy tax credits but I didn’t see metal roof listed. So if anyone could let me know what I need to do I would appreciate it.
The roofer didn’t even know about the credit until I had mentioned it to him. I got a certificate from the metal company the other day because I had called and asked them if the metal was energy star qualified. But they don’t seem to know how it’s suppose to be filed for the credit. You would think the roofer and metal company would have known something as that should be a good selling point for a metal roof. But…….

Answer: Here is the info from www.energystar.gov.

Requirements
ENERGY STAR metal roofs with “pigmented coatings” and ENERGY STAR asphalt roofs with “cooling granules”.

Tax Credit does NOT include installation costs.

So if you have an Energy Star rated roof, the materials cost will be what you will put on the form.

It’s line 2D on the form:

http://www.irs.gov/app/vita/globalmedia/5695.pdf

Energy Efficiency at Home and ‘On the Go’ Can Ease Pain of Cold Weather, Rising Gas Prices, Advises Alliance to Save …

Federal Tax Credits Provide Additional Relief

Energy Efficient Tax Credits – Watch These Tips