6. Energy-efficient home improvements
Did you know that there are tax breaks for some fairly easy energy-efficient home improvements? If the answer is no, they are available under the Nonbusiness Energy Property Credit.
In order to claim this credit which is found on part two of Form 5695, you must give all your attention to the specific spending limits, such as $150 for high-efficiency furnaces and boilers, and $200 for replacement windows.
As you already guessed, this tax break requires record keeping and filling out some worksheets. But if you do qualify, it is a tax credit, which will give you a dollar-for-dollar reduction of your tax bill. And when referring to taxes, every dollar saved helps a lot.
