RESIDENTIAL ENERGY PROPERTY CREDIT

Saving money and tax savings in particular are a hot topic at this time of year. Under the new tax law, you don™t have to be a new homeowner in 2009 to deduct qualifying property taxes, even if you don™t itemize. Prior to 2008, you did have to itemize your taxes in order to receive the benefit.

With this new rule, single filers can add up to an additional $500 to their standard deduction amount and joint married filers can deduct up to $1000 more. You will be required to submit a Schedule L with your 2009 tax return, but it™s definitely worth it if you qualify.

Additionally, homeowners can make energy-conscious purchases that will provide tax benefits when filling out their tax returns for 2009. The new law provides tax credits for making your principal residence more energy efficient and for buying certain energy efficient items with an increase to 30% of the cost of all qualifying energy-efficient improvements to existing homes. It also raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010. Qualified improvements include adding insulation, energy efficient exterior windows, energy-efficient heating, air conditioning systems, and more.

Ask your tax professional about the IRS’ issued guidance, deadlines, and other important qualifying factors for this and the following tax credit and don’t be one of the millions of taxpayers who will claim the standard deduction and miss out on the savings.

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