Monday, December 20, 2010
Money Monday: Tax Credits
With our second wave of cold weather, you might be wishing you had more insulation on your home. As 7's Lynn Martinez tells us now might be the perfect time for that kind of house project if you want to save on your tax bill.
WSVN -- Carmen Erigoyen installed a brand new energy efficient door, and thanks to the federal tax credits program, she'll be getting a break on her taxes next year.
Carmen: "They told me that this is about 30 percent that I will get in return, so I think it's great."
Carmen's new door cost $3,800, which means she'll save about $1,000. She doesn't get cash, but she can subtract that amount from her 2010 tax bill. Tax specialist Ed Sachs says it can be a good deduction.
Ed Sachs, Tax Specialist: "You have up to $5,000 to spend and get 30 percent of that as a credit."
All kinds of energy-efficient products are eligible, from select heating and air conditioning units to windows and water heaters, but you are running low on time.
David Reed, Lowe's: "Anything that you have installed needs to be installed by Dec. 31., so we see people with more urgency coming in and taking advantages of some of these opportunities."
Keep in mind, it's not just big ticket items. You can also get tax breaks on insulation, weather stripping and sealant.
Eric Durr, Lowe's: "We've got items that are as little as $5 that are eligible for the tax credit. There's a list of hundreds and hundreds of items."
Just remember to save all your receipts, you know how the IRS likes paper.
Ed Sachs: "All they have to do is fill out an IRS form, it's a very simple form, it just asks what you spent the money on and include it with their tax return."
Carmen says for once she's looking forward to doing her taxes.
Carmen: "It makes me feel great, because it's important right now to count pennies, so we are very content with it."
For a list of the products eligible under the program go to our wesbsite at wsvn.com we've got a couple of links to help you.
If you have any other money questions or story ideas you'd like us to look into on Money Monday, you can tell us about it by emailing us at firstname.lastname@example.org
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