Back to School Tax Credits

Well, folks, Labor Day’s just a stone’s throw away. You know what that means: no more white clothing and school is definitely back in session.

In the time you’re saying goodbye to your summer and hello to college, you’re probably not thinking about your taxes. But, you know, it might not be a bad thing to touch on when you’ve got a sec; those who pay for college in 2016 may be eligible for receiving tax savings on their 2016 federal return.

Here’s a bit info from the IRS about back-to-school tax credits:

American Opportunity Tax Credit
The AOTC is an education credit worth up to $2,500 per year for eligible students. This credit is only available for the first four years of higher education and is 40% refundable. If you’re eligible for the credit, this means you can get up to $1,000 of the credit as a refund, even if you don’t owe any taxes.

Lifetime Learning Credit
Another education credit, the LLC is worth up to $2,000 per tax return. Unlike the AOTC, there isn’t a limit on the number of years you can claim the LLC for eligible students.

Qualified Expenses
When calculating your credit, you may only use qualified education expenses paid. Qualified expenses include tuition costs and other fees or related expenses eligible students must cover to enroll in and attend an eligible institution. Speaking of…

Eligible Educational Institutions
You’ll need to make sure that the school you’re attending is considered an eligible educational school before receiving an education credit. Eligible institutions are those that offer education beyond high school, so that includes most colleges and universities. Some vocational schools and other postsecondary schools may also qualify you for a credit.

Stay Tuned with ExpressIRSForms
While our services have less to do with individual tax filing and more to do with businesses who need to file information returns, like W-2s, 1099s, and ACA forms, we do try to provide as much IRS-related information as we can! So stay tuned to our blog for more IRS updates, as well as tax and e-filing tips and facts.

And if you do have any IRS e-filing questions in the meantime, we’re available to help with that as well. Just give us a call or send us a live chat or email - we’re here for you 24/7!

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The #1 Way to Save on Your Taxes That You Didn't Know About

Congratulations, everyone! We’ve made it through another Tax Day! Monday was the last day to have your income tax return completed and sent off. So now that we’ve had a few days to recover from the rush, we should be able to take a few more months or so before we think about taxes again, right? Say, until next February or March? Right?

Wrong. As unfortunate as it is for those of us who reward our hard work with a significant amount of time off, procrastinating is not the way to handle taxes. So with Earth Day just around the corner (this Friday, the 22nd), and spring in the air, we thought we’d talk a bit today about how you can help save the Earth and save on your taxes this time next year.

Unfortunately, since the initial “Going Green” boom, many federal tax incentives for individuals have expired and efforts to reinstate them seem to have stalled. However, there are still a lot of tax benefits to going green, if you know where to find them. The Database of State Incentives for Renewables & Efficiency (DSIRE), for example, funded by the U.S. Department of Energy, is a comprehensive online source used to help find incentives and policies (from local to federal levels) that promote renewable energy and energy efficiency. This blog, brought to you by ExpressIRSForms, is another:

Current Tax Incentives for Going Green

• Renewable Home Energy System(s) Tax Credit
• This credit remains in tact through December 31, 2016. It covers 30% of the cost of a new renewable energy system (no upper limit), and can be applied to any owned home, not just a primary residence.
• There’s also a tax credit for 30% of the cost of a residential fuel cell and microturbine system (up to $500 per 0.5 kilowatts of power capacity) available through December 31, 2016.
• All-Electric Vehicle Tax Credit
• You can no longer get a tax credit for having a hybrid car, but if your electric car is what’s referred to as a “qualified fuel cell motor vehicle,” you could be eligible for a $2,500-$7,500 tax credit (based on the vehicle’s battery capacity).
• Visit the DOE’s Fuel Economy website to see if your car is eligible and for more information on state and local incentives for electric vehicles.
• Go Green by Hiring Veterans
• This one comes to us from the mind of Jarid Manos of Great Plains Restoration Council, and combines the tax breaks for going green with job creation for veterans.
• Corporations and businesses can get tax breaks for improving energy efficiency by installing locally produced solar and wind renewable energy and water conservations systems and (thanks to the Vow to Hire Heroes Act of 2011) for hiring U.S. veterans returning home from Iraq or Afghanistan. So, Manos suggests, “hiring [veterans] to do ecosystem restoration work.”
• That’s a tax credit of up to $5,600 for each veteran hired ($9,600 if he/she is wounded), plus the tax credits from your improved energy.
• Recycling Your Unwanted Electronics
• It’s not exactly news that you can get deductions for donating things like old clothes or furniture throughout the year. What you may not know is that recycling places are popping up all over the country accepting donations in the form of your old cell phones, laptops, TVs, and any other electronics you might be upgrading.
• Always make sure you’re dealing with a reputable company who will reuse your electronics responsibly, and remember to get a receipt for your files. If your total charitable contribution deductions exceed $500, you’ll need to submit a Form 8283 with your return next year.

Inspired yet? Tell us how you plan to go green in 2016 (or how you already have!) in the comments below! And if you have any questions about e-filing 1099s, W-2s, or ACA Forms, we’re here even in the “off” season. Just give us a call Monday through Friday, 9:00 a.m. to 6:00 p.m. EDT, at (704) 839-2270, or send us an email anytime at support@ExpressIRSForms.com.

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