Don’t Miss Out on These Last-Minute Tax Breaks Before The End Of The Year!
April may seem like forever away and who wants to think about tax planning right now? But paying attention and taking action this week could save you money in a variety of ways. Recently approved tax credits can cut your tax bill and make your home more energy efficient. Sounds like a win, win, right?
According to a Forbes Magazine report, Congress just recently finally approved the tax extenders bill (H.R.5771)
What is the Tax Extenders Bill?
The Tax Extender Bill extended more than 50 tax-related deductions and credits that had previously expired at the end of 2013. With just over two weeks left in the 2014 calendar year, the Senate finally decided to approve the tax extenders bill by a 76-to-16 vote. This last minute deal extended many expired tax breaks affecting millions of Americans.
What does that mean to you?
- This gives taxpayers a bit of a break through the end of 2014.
- The bill is retroactive so it covers the entire tax year 2014.
- The tax credits may not be renewed for 2015 unless the new Congress takes the matter up again.
- If you own a home, your 2014 tax representation may look slightly different than earlier this year.
So, clearly it’s time to check this list and take action! Here’s a look at the BIGGEST 4 Tax Breaks that can help lower your federal tax bill:
1. Tax credit for residential energy-efficiency improvements on qualified insulation, roofing, windows and doors! Bottom Line: It’s hip to go green and saves you money two ways – tax deductions and energy savings! For 2014, you can deduct up to $500 for installation of energy-efficient home improvement of qualified windows, doors and roofs, as well as certain water heaters and qualified heating and air-conditioning systems. It’s definitely the time to invest and save if you can.
2. Teachers’ Classroom Expense Deduction. As a former teacher, I wanted to include this one as it affects millions of teachers across the country. Bottom Line: Teachers are given the opportunity to deduct up to $250 of any unreimbursed expenses you for in the classroom.
2. State and Local Sales Tax Deduction. Bottom Line: This extension allows you to deduct state and local sales taxes you paid in lieu of state income taxes.
3. Mortgage Debt Forgiveness and Deduction of PMI. Bottom Line: This applies when a lender is willing to forgive debt you owe when you sell your home for less than what’s left on the mortgage. When this happens, typically the IRS treats this debt as income. Under the tax extension bill, this cancellation of mortgage debt will be excluded from income for 2014. Those who qualify may now claim a tax deduction for the cost of paying PMI for their homes and can deduct property taxes plus interest paid on your mortgage to reduce your overall taxable income.
Why NOW?
Don’t get too comfortable with these tax breaks as they expire on December 31, 2014. Yep, that’s 3 days! Take advantage of these tax breaks before the end of the year – especially the Residential Energy Credit! Contact us at Coastal Windows & Exteriors to find out how you can take advantage of this credit at 978-304-0495. You literally have three days! Time to save money! Coastal Windows & Exteriors is located in Beverly, MA and we install windows, roofing, siding and doors across Massachusetts, southern New Hampshire, southern Maine and Rhode Island.
