The federal government offers homeowners tax credits for installing certain energy-efficient products in their homes, such a new windows, doors and insulation. After completing the renovations, keep all receipts and invoices for each energy-efficient product. You will need to submit Forms 1040 and 5695 to the IRS come tax time. The latter is used to claim the renovation tax credit. Does this Spark an idea?
Instructions
1. Obtain certification from your contractor that your remodeling products comply with IRS Section 25c requirements. Sample products include new insulation, high-efficiency furnaces and new windows. You can get these records from your remodeling contractor. The document should include the manufacturer's name, identify the product, provide proof that the product meets IRS 25c requirements, include relevant climate zones and a declaration that the certification is true.
2. Make copies of all receipts and invoices for each eligible product.
3. Print IRS Form 5695, the Residential Energy Efficient Property Tax Credit form. Read the instructions for completing each line at the bottom of the form. For example, you will need to check "Yes" next to each energy-efficient product you installed in your home. After reading the instructions, complete the form.
4. Fill out Form 5695 according to the instructions at the bottom of the form.
5. Enter the amount of the credit, calculated on Form 5695, on Line 52 of Form 1040, the general income tax form you use to file taxes.
6. Mail the forms, complete with receipts for each qualifying product, to the IRS. The address differs depending on what part of the country you live in. You can find the mailing address at the IRS website.
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