Some Quick Tips for Homeowners to Save Money on Income Taxes and Utility Bills

May 05, 2010 / Posted in Uncategorized

Now that the first time homebuyer tax credit has expired, here are some tips on how to got some other credits for your 2010 tax return:

-Check out federal tax credits. Through Dec. 31, 2010, homeowners can purchase products that qualify as contributing to energy efficiency improvements and receive a 30 percent federal tax credit, which in most cases reimburses homeowners up to $1,500 for the cost of materials. Energy efficient products for homes, including heating, ventilating and air conditioning (HVAC) systems, insulation, roofing materials, water heaters and windows and doors qualify for tax credits. Homeowners who received the full $1,500 energy efficiency tax credit in 2009 aren’t eligible for the refund in 2010.

-Track your qualifying purchases. Applying for federal energy tax credits is simple. For qualifying products purchased this year, homeowners will apply for the tax credit on their 2010 IRS Form (5695). Save receipts from product purchases and the Manufacturer’s Certification Statement, a signed statement from the product manufacturer certifying that the product qualifies for the tax credit. These certificates should be available through the manufacturer’s Web site and are only to be kept for the homeowner’s records.

-Go local for more financial benefits. Additional incentives for making energy efficiency improvements are also available from state and local governments and utilities. The Department of Energy developed a database of state, local, utility and federal incentives and policies that promote renewable energy and energy efficiency. Through the Database of State Incentives for Renewables & Efficiency (DSIRE), homeowners can click on their state and access information on grants, financing options and local rebate programs.

-Start saving today. In addition to tax incentives, homeowners can reduce their home’s heating and cooling costs by as much as 20 percent through proper insulation and air sealing techniques, according to the U.S. Environmental Protection Agency (EPA). Homeowners can estimate the current efficiency of their home by using an online energy efficiency assessment tool, such as the Home Energy Analysis test available at JMHomeowner.com. Online assessments are a quick and easy way to gauge the savings that could be realized through energy efficient home improvement projects.

-For more information on energy efficient home improvement projects that qualify for tax credits, visit: http://www.jmhomeowner.com/insulation/energytaxcredit.asp