Time to take advantage of solar energy credits
Summer is here which means it is construction and home improvement season; the perfect time to add solar to your home and take advantage of some really great tax credits.
The Federal energy credit for installing solar on your residential property is 30% of the cost with no limit to the credit! The credit is not refundable but it can carry forward if solar energy credit exceeds tax liability. Current federal solar property credits expire December 31, 2016.
In addition to the federal tax credit, many states offer solar energy credits.
Oregon’s Tax credit is based on $1.90 per watt of installed capacity (DC) up to $6,000 per residence taken over four years ($1,500 per year) limited to 50 percent of the cost of the system. It also must be a minimum of 200 watts to qualify.
Another possible benefit to installing a solar system on your property is many local utilities offer rebates and interest free loans to provide further incentive for customers to take advantage of this, but every local utility seems to have different offers. Contact your local provider to see if you qualify for loans and rebates on the installation of solar energy on your property.
Wedding season is here and if you have an upcoming wedding, here are some tips to help you get things in order for the upcoming tax season:
Change of Name
The names and social security numbers on a tax return must match current social security records. If you are changing your name, make sure to file form SS-5 with the Social Security Administration to get an updated Social Security card with the correct name on it. The easiest way to get the form is to download and print it from their website www.ssa.gov/forms/ss-5.pdf , it can also be picked up at your local Social Security office or ordered by calling them at 1-800-772-1213.
Changing Tax Withholding
Because your filing status will become Married you may want to consider changing your tax withholdings with your employer. You can do this by filing a new form W-4 with them. Remember when filling out form W-4, withholding at a married rate is lower than single and some married couples find not enough will be withheld depending on income levels of the couple. You can get a form W-4 from your employer or IRS.gov/forms. Feel free to contact us at ABTS if you have questions about withholdings and we can help you with questions about how to optimally fill out form W-4 for your unique situation.
Reporting Change of status to the Health Insurance Marketplace
If you obtained your health insurance through the Health Insurance marketplace and qualified for advanced payments of the premium tax credit, be sure to notify the marketplace so that the credit can be recalculated. If you receive more premium tax credit than you qualified for based on income and family size when filing your tax return, you may need to pay the excess premium tax credit back, so it is very important the income reported to the marketplace be as accurate as possible.
If your spouse has employer provided health insurance you may want to find out the cost to be added to their plan. It may be less expensive than the insurance you have through the marketplace.
Filing status Changes
If you are married as of Dec. 31, 2015, you are considered married on your upcoming 2015 tax return. As a married person you can file jointly with your spouse or separately. Generally it is most beneficial to file jointly but we can figure the tax both ways to save you the most money.