Tag Archives: Credits

Which Home Improvements Qualify for Residential Energy Credits?

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With rising energy cost, it is now a wise choice to invest in home energy efficiency. As it doesn’t just save you energy and money alone, it increases your property’s value and gives you money back in the form of residential energy tax credits for home improvements. Homeowners who are interested in knowing how to take care of the upfront cost with the help of tax breaks on specific home improvement projects will find a new blog post on American Tax Service very resourceful. The post reveals all they need to know about the residential energy tax credits and how they can easily claim it.

According to American Tax Service, there is no better time to consider energy-efficient home improvements than now as most of the energy tax credits decreases in value every year. The Residential Renewable Energy Tax Credits is perhaps one of the most generous energy tax credits and it applies to newly built homes as well as an existing primary or secondary property. Homeowners can claim up to 30% of the overall cost of installing their system including labor cost using this tax credit.

Homeowners who would like to claim the Residential Energy Tax Credit must file Form 5695 with their tax return. They are also expected to provide information regarding the costs of installing their energy-efficient system. The tax credits are nonrefundable, so while it can reduce the tax bill up to zero, it does not offer a tax refund. In addition, the total amount of tax credits can’t exceed the amount of tax owed.

Another energy credit homeowners might also take note of is the non-business energy property tax credit. While this tax credit has expired, there is a possibility it could be renewed by Congress. The American Tax Service recommends using the H&R Block Online Tax to maximize the tax deduction and energy credit that you are eligible for. It offers step by step instruction and ensures that you get the largest refund possible.

For more information about the Residential Energy Credits, please visit, https://americantaxservice.org/home-improvements-qualify-residential-energy-credits/

What Are the Best Tax Credits for Education

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Students who would like to get a bit of respite on the high cost of their education will find a new blog post on American Tax Service very resourceful. The post offers some insight into two of the best educational tax credits available to them in the upcoming tax year. And it seeks to help them make an informed decision on which of the educational tax breaks is best suited to their needs as they cannot use more than one in any given tax year.

The first of the tax credits explained by the American Tax Service is the American Opportunity Credit. To be eligible, the student must be enrolled at least half-time per academic period during the tax year in a school currently participating in the student aid program of the Federal government. Students who are already done with the first four years of schooling are excluded from the scheme as well as students with felony drug convictions. The American Opportunity Credit can be worth as much as $2500 and can be claimed on anything a student needs to attend school including tuition, books, and supplies. It is best suited for undergraduate college students

The other tax credit is the Lifetime Learning Tax Credit. To be eligible, a taxpayer needs to only take a course per year at a school that is enrolled in the Federal student aid program. The credit does not also consider whether it is the first four years of schooling or not. Regardless of how many years you have spent in school, you can qualify for this tax credit. The Lifetime Learning Credit can also be used for anything from tuition to supplies but all supplies must be purchased directly through your school. The Lifetime Learning Credit is worth $2,000. However, it is a nonrefundable tax credit. It is best suited for students in postgraduate programs.

To claim any of the education tax credit, taxpayers must fill in and file Form 8863 with their tax returns. The American Tax service recommends using the H&R Block online tax filing. It will provide the form and easily help calculate exactly how much you are entitled to.

For more information, please read the original blog post by the American Tax Service here, https://americantaxservice.org/best-education-tax-credits/

A Guide to the Education Tax Credits 2018, 2019

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College is more expensive than ever, but the Education Tax Credit is available to help cut down on educational expenses. Taxpayers or dependents who would like to save more on their tax bills in 2018 will find a new post by the National Tax Report on the education tax credit insightful. The blog post reveals the two separate routes to obtaining the education tax credits and student tax deductions, their benefits and all they need to know about qualifying for them.

There are two types of education tax credits – the American Opportunity Tax Credit and the Lifetime Learning Credit.

The American Opportunity Credit can wipe as much as $2,500 off taxes in education expenses. The credit covers everything from tuition fees to textbooks and $1,000 of the credit is fully refundable. To qualify for the American Opportunity Tax Credit, the taxpayer must be;

– Enrolled at a school that is part of the Federal Student Aid Program

– Must at the very least be a part-time student.

– Cannot have any felony drug convictions.

The Lifetime Learning Tax Credit is the other education tax credit and it is more accessible. It is a non-refundable credit but anyone who attends at least one course per year at a school enrolled in the Federal Student Aid Program is eligible for it. The tax credit covers tuition and supplies (purchased from the school) and has a maximum value of $2,000.

Taxpayers can easily determine how much they are entitled to by checking out the education tax credit and deduction calculator. Just by answering some basic questions, they will get an accurate idea of how much can be wiped off their tax bill.

To claim the education tax credit, taxpayers will need to file IRS Form 8863. The form is available through software like TurboTax online, which will automatically fill them out and submit it along their tax return using the information that they provide. Also, by using TurboTax taxpayers can get an accurate estimation of how much is owed the IRS in taxes this year, or if they are lucky enough to be entitled to a tax refund.

For more information about the education Tax credit, please read the original post on National Tax Report here, https://nationaltaxreports.com/what-is-an-education-tax-credit/

Educational Tax Deductions and Credits

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The cost of education is always rising. However, if you are someone who wants to grow your knowledge base you will be happy to know that education tax deductions and credits can help education tax deduction credityou with the costs of your education.

One of the tax credits is the American Opportunity Credit and another is the Lifetime Learning Credit. These credits allow you to reduce your tax dollars, dollar for dollar when you claim educational expenses on your federal tax refund.

American Opportunity Credit

This credit allows you to reduce your taxes up to a maximum of $2,500 per student for the educational expenses endured for the first four years. However, students have to attend at least part time and not have been convicted of a felony drug crime.

Various things qualify for this tax credit such as books, equipment, supplies, tuition, and other school related fees. In the event that your taxes are less than $2,500, the refund cut off amount is $1,000. However, those who make more than $80,000 or couples who make more than $160,000 will receive a low credit amount. The phase out limit for the credit is $90,000 in income or $180,000 for couples.

Lifetime Learning Credit

You do not have to be actively pursuing a degree in order to claim this credit. This credit is for anyone who is taking a course to further his or her education. It covers required tuition, equipment, and books. It allows you to claim a maximum amount of $2,000 on each tax return however; if the amount granted is more than your tax bill, you will not receive a credit in the form of a refund.

Additionally, the phase out limit is $63,000 or $127,000 for couples. Those who make more than $53,000 or couples who make more than $107,000 will receive a lower credit amount.

Educational Tax Deduction

Tuition and fees deduction, student loan interest, work related education, scholarships and fellowships can allow you to ease some of your educational financial strains too.

Tuition and Fees Deduction

If you are unable to claim the Lifetime Learning Credit because of the phase out limit, you can claim the Tuition and Fees Deduction of up to $4,000. This is true even for taxpayers who do not itemize their tax returns. As long as you do not make more than $80,000 or $160,000 for couples you are eligible. However, you are unable to claim both a credit and a deduction simultaneously.

Student Loan Interest

Even if you do not itemize your deductions, you can deduct your student loan interest on your taxes. This deduction does not phase out until $2,500 per tax return. However, you must not exceed $60,000 in income or $125,000 if you are married. Furthermore, if you have cash in a US savings bonds to pay for your education the interest is tax-free as long as the cash is used for your education.

Work Related Education

If you are going back to school due to your job, you may be eligible to claim this itemized tax deduction. However, you have to prove that the education was to maintain or improve your work skills or a requirement from your employer. However, this deduction is not for those who have to do it to land a new career.

Scholarships and Fellowships

If you receive a scholarship or a stipend for a fellowship, it is tax-free if you use the funds for tuition, supplies, or other school related expenses. You do have to be a degree candidate though.

Posted by Frank Ellis
Examiner.com, Tax Preparation
Website, http://bestirstaxrefund.com/