Photo by Flickr user Daniel Borman.
Finding ways to decrease your tax bill and reap a larger refund are an absolute necessity for Americans coping with today’s struggling economy. However, many Americans over pay their taxes, despite their attempts to squeeze every dime.
Over payment is not surprising since the constantly changing tax code is so complicated that it is virtually impossible to decipher without an accountant or quality tax preparation software. Unfortunately, even the best software or the savviest accountant can miss some important deductions. Here are five ways to make the most of hidden tax credits.
1. Remember the roof. According to energystar.gov, some roofs qualify for tax credits. Energy efficient roofs reflect the sun’s rays rather than absorbing them. This improvement keeps your home cooler in the summer.
2. Update appliances. It was no fun when you ran out of hot water last February. And it was miserable when your HVAC system decided to quit in mid-July. Writing that large check for new appliances was painful, so you put it out of your mind. But both of these items come with sweet tax credits. So jog your memory and include them when you complete your taxes this year.
3. Refresh your interior. Did you know that some window treatments qualify for tax credits? Energy efficient shutters, for example, can bring you up to $500 on April 15. Even certain shades can reap big rewards. So if you are considering updating your décor, save your receipts and watch your tax bill shrink.
4. Keep it sealed. You know that adding insulation comes with tax incentives, but did you know that even new weather stripping is tax deductible? According to energystar.gov, weather stripping, caulk that is designed to seal away drafts, and even a can of spray foam are all tax deductible.
5. Let the sunshine in. Getting rid of drafty windows and doors is a great way to be a winner at tax time. ENERGY STAR skylights, windows and doors all come with deductions. Furthermore, families can enjoy deductions for using approved windows, doors and skylights even if they are not replacements for old ones. In other words, add on to your home and receive a tax deduction!
Having a beautiful home that is also energy efficient is one of the best ways to improve your quality of life as well as increase your tax refund. So include the improvements you made last year when you prepare your taxes. Better yet, make plans to beautify your home this year. Not only will you save on taxes, you will also enjoy much smaller energy bills.
Author Bio: Chaleigh Glass is a freelance writer from Ohio that currently lives in NYC. She enjoys writing and lifestyle photography. To learn more about her, you can check out her Google+ profile.