Miss your chance to deduct energy-efficient home improvements from your 2006 tax return? H&R Block has some tips on how to start preparing now to get the most out of your return in 2007.
The company says that taking pre-emptive steps can mean the difference between being tripped up by taxes or saving big bucks come 2008, but phasing in money-saving strategies at the right time is as important as any one move a taxpayer may be mulling.
"People tend to tune out taxes until late in the year," said H&R Block Advice Delivery Manager Maggie Doedtman. "At that point, it's almost too late. If taxpayers didn't like their bottom line this year, it's time to see if there's anything they can do to get a better result next tax season."
For instance, taxpayers who adjust their withholding now will realize benefits for two-thirds of the year, compared to those who don't make the adjustment until late in 2007—when many Americans start thinking about their next tax return.
So if you are planning to make energy-efficiency improvements on your home to save money on your energy bills, H&R Block says it can pay to be green if you get started now. A one-time, $500 credit for energy-efficient home improvements, such as replacing doors, windows and insulation, expires at the end of 2007. The amount covers improvements made in 2006 and 2007, and the value of the credit can be lumped together if you didn't claim the benefit this tax season.
If you want more tax tips, check out H&R Block Offers Six Early Tips To Limit Tax Pinch in 2008.
