The Federal Tax Credits Blog

Archive for the ‘IRS Credit’ Category

Question: when may I receive my first -time home Buyers Tax Credit?

I have just bought a new home (first one) and I was told I could go ahead and receive my tax credit. I would like to start doing home improvements. Like a new kitchen and finishing the basement.

So my question is: Can I already receive it or must I wait till tax time?
And: Where do I do it? At the IRS website?

Thanks!

Answer: Details here: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

You can amend your 2008 tax return by filing a 1040X return http://www.irs.gov/pub/irs-pdf/f1040x.pdf

Attach to it the first-time homebuyer form, FORM 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf

The credit is 10% of your purchase price, up to $8,000 max. credit. You must not have owned a primary home within the last three years (which you have not), and you must live in your new dig for at least three years from the purchase date. There are also income phase out limits, which you can find in the first link at the top, along with other key information.

Expect at least 12-16 of processing time by the IRS if everything checks out and you’d qualify for the credit. You may want to send in a copy of your closing statement along with 1040X return and FORM 5405 so there would be no delay in verification.

Tax Deductions Can Move You To A Lower Income Bracket

Tax deductions and credits both work to save you money on your tax bill, but they are applied differently. A deduction reduces the amount of taxable income, which can shift you to a lower tax bracket. A tax credit decreases the total amount of taxes that you owe; if you dont owe anything, you might even receive a refund.These days, its simple to file taxes online. CompleteTaxs comprehensive…

Shredder Day at West Suburban Bank in Downers Grove, IL

Question: What qualifies for getting a tax credit (up to $1500) for a new roof? Is there a…?

…specific list?
The roofer I asked did not know for sure. They said usually the light dray colored ones do but it always changes. Also said there is not rating per say like windows have. What will the IRS use this year?

Answer: The following is a summary regarding roofs – it is not specific – the energystar.gov website helps some. In prior years we had a problem here in NY because it only applied to 2 family homes. No mention in this that I see.

This citation says the roof has to be approved but there is no list (!). However, the manufacturer has to supply a statement that it is.

Yes, “metal roofs with appropriate pigmented coatings” and “asphalt roofs with appropriate cooling granules” that also meet ENERGY STAR requirements are eligible for the tax credit. The tax credit is for 30% of the cost of roofing materials only, up to $1,500 in 2009 and 2010. Installation or labor costs are not eligible for the 30% tax credit. Roof coatings are NOT eligible for the tax credit.
Unfortunately, a simple list of all roofs that qualify for the tax credit does not exist.
There are many metal and asphalt (either shingles or “Modified Bitumen”) roofs listed on the ENERGY STAR qualified product list. EPA can not confirm that these ENERGY STAR qualified roofs are eligible for the tax credit. Check with the manufacturer, and ask them to provide a Manufacturer’s Certification Statement.
If you want to look at the ENERGY STAR qualified roof list, look in the “Type” column for:
Metal roofs will have a Type = “Metal” (~ 2,000 metal roofs) Asphalt Roofs will have a Type = “Shingle” (~50) or “Modified Bitumen” (~50). Shingles are typically used on sloped residential roofs. Modified Bitumen is a rolled roof product generally used on flat roofs. ENERGY STAR qualified roofs:
Excel: http://downloads.energystar.gov/bi/qplist/roofs_prod_list.xls PDF: http://downloads.energystar.gov/bi/qplist/roofs_prod_list.pdf
Reflective roofs are not for everyone. They will provide the most benefit in hot sunny climates where you are using your air conditioning a lot. If your house is already shaded and the roof is not exposed to much sun, then a reflective roof may not provide a significant benefit. The benefits will also be lessened if the attic space is well insulated.
The law specifies: Any metal roof or asphalt roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings or cooling granules which are specifically and primarily designed to reduce the heat gain of such dwelling unit

Home Energy Efficiency Improvement Tax Credits
Consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010. See EnergyStar.gov for a complete summary of energy efficiency tax credits available to consumers

How to Get More From Your Tax Return

The tax deadline is coming quickly. If you still haven’t done them yet, you may be able to take advantage of some tax credits that are sometimes overlooked.

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TurboTax Deluxe Federal + E-file + State 2011 for PC [Download] $45.98 TurboTax Deluxe: Guides you step-by-step to maximize your deductions…

TurboTax Deluxe Federal + e-File + State 2010 – [Old Version] $3.50 The Intuit TurboTax Deluxe Tax Year 2010 Software walks you through over 350 deductions including mortgage interest, charitable contributions, education, medical expenses and more. Audit Risk Meter™ helps you reduce your chance of an audit. ItsDeductible® helps you accurately value charitable donated items. The Intuit TurboTax Deluxe Tax Year 2010 Software also guides you through changes…

Superior Windows & Doors – Oval Office

Question: Is an addition to my house considered home improvements or new construction in the eyes of the IRS?

I added an addition on to my existing primary home in 2010. Do the windows and insulation used qualify for the 2010 Energy Tax Credit if they meet the criteria set by the IRS?

Answer: the addition is addition to your basis
you may have the Energy Credits for the windows an insulation
otherwise you just increased the value of your home

11 tips to cut taxes before April 15

KUSA - How’s that 1040 form coming? April 15 will be here before you know it. On 9NEWS 5 a.m. we looked at some of the things you can do to manage your tax bill and avoid filing hassles.

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Recovery: Energy Tax Credit-Claim It – 2011

FDIC Proposes to Fine Republic $2 Million for RALs

The Federal Deposit Insurance Corp. has proposed a $2 million fine against Republic Bank & Trust Co. after the bank tried to coach tax preparers using its refund anticipation loan products on how to respond in case the FDIC visited them.

Tax Tips: Earned Income Tax Credit 2011

Question: I need help with first time home buyer tax credit. Quick Question. Can you help me?!?

We just purchased our home and need to amend our 2008 taxes.

I went to the IRS website and printed the 1040x and the 5405 (first time homebuyer credit).

On the 1040x-line 15 is what I need amended correct?
And what would I put in the three boxes next to it? A.B. and C? Sorry, I so dont understand tax talk

So if I just mail these in, say tomorrow. I would receive a refund of 8000 back, like within a couple months or however long it takes?

Thanks Everyone!

Answer: Allow 12-16 weeks.

Start at line 10. On line 15, for the full credit, $0, $8000, $8000.

While the form doesn’t ask for the closing papers, attach them. So many fraudulent 1040x returns are showing up that the IRS had to stress audit issues. If selected, the IRS will spend a week mailing you a letter to fax in the closing statement. By attaching the papers to your return, you would save a week.

Money Matters – Taxing Times: Planning For 2011

This is a good time to start your tax planning for this year.

Make 2011 your year to purchase a home