Surprising ways your homeowners can save on their taxes this year

“Many Americans don’t realize how much they are able to write off on their taxes from the energy upgrades they made throughout the year,” said Ameeta Jain of Homeselfe.

Jain offered some tips for you to share with your homeowners, and perhaps even use yourself. “Maximize your refund by checking to see if your energy star certified appliance purchases are eligible for tax credits,” said Jain. “Additionally, families are able to earn ‘qualified energy efficiency improvement’ tax credits on several practical home energy upgrades, such as insulation, roofing, exterior roofing and exterior windows.”

Jain said that some homeowners are unaware of the residential energy efficient property credit, which is available for larger contracted energy renovations. Not sure what qualifies? Jain mentioned geothermal heat pumps, residential small wind turbines, solar energy panels, solar-powered water heaters and fuel cells.

“Not only do homeowners receive tax credits for these upgrades, but there is no dollar limit and they’re saving money every month on their monthly utility bills, generating their own renewable energy, and increasing their property value,” she said.

As of 2015, the federal government offers two different types of energy tax credits: the residential energy efficient property credit and the nonbusiness energy property credit, Jain explained. “Those who qualify for the residential energy efficient property credit receive 30 percent of the cost of equipment, including installation, with no upper limit, and the nonbusiness energy property credit returns up to $500, depending on the total cost of the upgrade,” she said. “You can potentially save more with the residential energy efficient property credit, however these are typically more expensive up front.”

Jain said the most popular option for energy efficient upgrades are solar energy panels, since solar power is endlessly renewable.

To make sure your homeowners don’t miss anything, Jain said to make sure to take the time to be thorough when filing taxes this year. “Talk to your CPA and don’t forget to consider the upgrades you made to your home in 2015.,” she advised. “To claim energy tax write-offs, you must file Form 5695, found on the IRS website. This form will highlight all tax credits you are eligible to maximize your refund.”

And it’s not too early to start planning for next year’s tax season, she said. “Be informed. The most important thing homeowners can do in preparation for next year’s tax season is for them to be aware of the tax credits available to them. This will allow them to make educated decisions throughout the year when renovating the home, purchasing appliances and/or making energy efficiency upgrades,” she said.