What is a tax credit?
You claim a tax credit when you file your federal income tax form on April 15th. If you owe the federal government $3,000 and you have a $1,000 tax credit, you only owe the government $2,000. It is a dollar for dollar reduction in the taxes you have to pay. Because tax credits save you money directly, they are better than the deductions you make when you give to a charity. The tax credits I talk about are related to renewable energy and energy conservation.
Below is federal form 5695 which is used to get your tax credit come tax season:
Residential Energy Efficient Property Credit 5695 - Get more Business Documents
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
