Tax Credits Not to Miss

 

Tax year 2006 is the first for which you can get a tax break for making your home more energy efficient.

 

You can take a 30 percent credit up to $2,000 for the cost of solar water heating or photovoltaic equipment in your home. You can get a 10 percent credit up to $500 for insulation and heat-reducing metal roofs, and up to $200 for energy-efficient windows. Labor costs, though, don't count.

 

(For more information, see IRS Form 5695. The credit is entered on line 52 on the your form 1040.)

 

If you bought property and reimbursed the seller for the portion of property taxes he paid for the year, you may deduct that amount on your return, unless you're subject to AMT, which disallows property tax deductions.

 

(This deduction is entered on your 1040 form Schedule A)

 

For more tax advice, we suggest you consult a tax professional.  If you have questions, please post a comment here.

 

 

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