How Tp Get A Tax Deduction For Replacing Windows
It's a complete win-win situation for you if you know how to get a tax deduction for replacing windows. This is great news for those of you who plan on getting windows replaced in order to lower your energy bills in the long run. Nevertheless, not all the windows will qualify for this tax deduction. With the help of these easy steps on getting your tax deduction guide, you are ensured to save some money without trouble!
To get a tax deduction for replacing windows, you will need:
- Form 5695 - Residential Energy Credits
- Form 1040 - Federal Income Tax Return
- Purchase receipt
- Manufacturer's Certification Statement
- Purchase the replacement windows that meet the residential energy guidelines. ENERGY STAR-qualified windows are a must! In addition, the windows must have a U-factor and the Solar Heat Gain Coefficient (SHGC) should be less than or equal to 0.30. Forget the tax deduction if your new windows do not meet all of these criteria.
- Retain the purchase receipt along with the Manufacturer's Certification Statement. Besides the receipt, you will receive a copy of the certification statement. It is signed by the manufacturer, certifying that the windows are qualified for tax credit. Although you are not required to submit both of these documents, you should keep these copies for your records. This step is not really part of the filing process. However, this step is strongly recommended.
- Fill out Form 5695. Take a look at your Form 1040. The amount to be claimed is located at Line 52. Note that you cannot claim any installation costs.
- Submit Form 5695, the purchase receipt and your tax return to the IRS. Double check that everything has been filled out correctly. The IRS will reject your paperwork if there is an error or missing information. Make sure you submit all the paperwork together.
That's it! See how simple it is to get a tax deduction for replacing windows by following these four quick steps? Installing the energy-qualified window replacements not only save you money, but you are also getting money from the federal government! How can anyone resist this program with all the money-saving benefits? It surely is the right time for everyone to take full advantage of it.