Tax season is right around the corner, and you might be wondering how you’re going to fare this time around. There’s a lot of tax credits and deductions available, but knowing which ones you qualify for can be tricky. If you purchased a new appliance in the last two years, you might be wondering if there’s a tax credit available to you. We’ll help break it down for you.
The Energy Star website has a helpful breakdown of the different tax credits available for retroactive purchases made in 2016 or 2015. One of the most common ways people receive tax credits is through purchasing a qualifying appliance for their home. You can write off 10% of the cost of the appliance, up to $500 or you can write off a specific amount from $50 – $300. The appliance must be for your primary residence, and it cannot be for a new construction home or a rental property.
While there are some great Energy Star appliances on the market, many of them do not qualify for a tax credit. Washers, dryers, refrigerators, dishwashers… you name it. Appliances with the Energy Star certification will save energy, which means savings on your utility bills. However, to receive a tax credit, you will have had to purchase a qualifying appliance such as a central air conditioning unit or a non-solar water heater. See an inclusive list here.
These tax credits are only available for purchases made through 2016. Solar energy tax credits have been extended, and are available until 2022 (and beyond). You can find out more about the federal solar tax credit here.
In order to receive the maximum benefits from your investments, it’s always best to have a professional prepare or at least look over your taxes prior to submitting them to the IRS. After all, if you’re spending your hard-earned money on home upgrades, you want to make sure you receive all the rebates and credits you’re eligible for.