How to Earn Tax Credits for Your Home Renovations
Did you know you can receive tax credits when renovating your home? Home improvements can provide valuable opportunities to save on your taxes. This is another great reason upgrading can be the best decision you make as a homeowner! So, if you have completed renovation projects this past tax year or are getting a plan for future upgrades, read closely to learn the best tips!
You can rack up your deductions and credits in many ways, but you need proof to do it properly! Keep all receipts and record progress during your projects to secure proof of your upgrades. It’s as easy as ‘renovate, document, save’!
Glickman is here to help you learn how to save during your renovations. We have many resources to help you learn about tax credits as a homeowner!
About our Experts
Russ Glickman is a leading expert in accessibility remodeling. Russ is the owner of Glickman Designs and reviews all projects. He has decades of experience in many areas of the remodeling world. He is an expert witness for attorneys and has a legal background. Russ and his team can help you optimize your tax credits for your home renovation projects and ensure you receive the best care this tax season.
Tax Deductions vs. Credits
Before diving deep into the many improvements that can save you money through taxes, you must know the difference between deductions and credits.
Deductions help reduce your taxable income. What you claim cannot be taxed on. For instance, if you earn $80,000 and claim $10,000 in deductions, you will only be taxed on $70,000. Tax credits help reduce your tax bill (what you owe) dollar for dollar. For example, if you owe $8,000 in taxes but have a $2,000 tax credit, you will only owe $6,000. Both can save you money and are worth recording and claiming.
Home Improvements for Tax Credits
Below is a list of renovations that can be turned into credit. Remember, to claim these; you must have proof of the upgrades and the time frame they were completed. Take photographs, before and after pictures, and always keep your receipts for an easy claim process. Renovations ready to be claimed must have occurred during the prior tax year.
Have you upgraded your home’s accessibility features? If you are a resident of Maryland, you may be eligible for tax credits specifically towards projects that allow the house to be more accessible. Any approved accessibility features can be presented to calculate the tax credit amount.
If you want to learn more about this tax credit and the qualifications required, you can contact us at Glickman. We are proudly directly connected to Russ Glickman, who is one of the nation’s most recognized home accessibility experts. As the owner of Glickman Designs, he is involved with each project, big or small.
You may earn tax credits if you have installed new insulation in your home! Typical bulk insulation products qualify for redemption, such as blow-in fibers, expanding spray, and pour-in-place.
Products that reduce air leaks can also qualify. It can be considered during calculation as long as it is designed to seal and has a manufacturer’s certification statement.
Windows and Skylights
If your renovation calls for new windows or skylights, then you will want to be sure to save those receipts! They must also meet the ENERGY STAR Most Efficient criteria. Principal residence owners who installed these items can claim this for their tax credits.
Principal residence owners who have replaced exterior doors can also claim a direct credit!
Of course, credits have some limitations, and it requires a bit of calculating to get the right numbers. If you are curious if your renovations meet the criteria, you can contact Glickman to receive more information. We always strive for our clients to get the most out of their renovations; this is another way we can help you!
* Please note, we are not offering specific tax advice. Tax savings is often available but it is not possible in every situation. please check with your CPA to determine which Tax Credits or tax deductions may be applicable to your personal situation.