If you made your home more energy efficient this year, the 2024 tax season may run smoothly for you.
Adding alternative energy sources to your home may result to a good 2024 tax season as it may provide the biggest tax breaks for you. (Photo: Marca.com)
Get To Know More Of The 2024 Tax Season
The Inflation Reduction Act of 2022 has expanded home energy credits for the upcoming 2024 tax season. If you made your home more energy efficient in 2023, you may receive good news for the 2024 tax season and be eligible for a larger tax refund.
To have a smooth 2024 tax season, adding alternative energy sources to your home provides the biggest tax break, but simple improvements to oil or gas appliances, insulation, windows, and doors can also result in a tax refund for the 2024 tax season.
Furthermore, in line with the 2024 tax season, there is a tax credit available for installing alternative energy charging stations for electric vehicles at home. The two main tax credits involved in the 2024 tax season for improving energy efficiency at home are the energy-efficient home improvement credit and the residential clean energy property credit.
According to a published article by CNET, the energy-efficient home improvement credit provides a 30% refund to be received during the 2024 tax season for installing Energy Star-certified devices or making energy improvements such as insulation and doors. The limit for this credit has increased to $1,200 annually, which means that it may be different for the 2024 tax season.
The Start Of The Tax Season
In a published article by Ramsey Solutions, tax season typically starts at the end of January. You should receive your W-2 form from your employer by the end of the month, either in the mail or online if your employer uses a digital payroll system. Freelancers should also receive a 1099 form from each of their clients. Other tax forms you might need include mortgage interest statements, investment income statements, and charitable contribution statements.
It’s a good idea to gather your receipts if you plan on itemizing deductions. Once you have all your forms organized, you can file your taxes. If you’re unsure about what forms you need, it’s recommended to consult a tax professional.
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