Tax Credits

With the recession pushing more Americans into poverty, it’s critical that taxpayers learn about and obtain all the tax credits that they’re entitled to. Online resources such as www.LawHelp.org, a national legal information portal, offer a variety of free tools and information for those grappling with tax preparation.

Resources accessible from LawHelp.org include easy-to-understand information about both state and federal taxes, including fact sheets for those facing a variety of special circumstances; information about rebates and tax credits; links to sites offering free tax filing; referrals to organizations that offer free or low-cost help; information on avoiding tax scams; and more.  LawHelp.org is a project of Pro Bono Net, a nonprofit leader in increasing access to justice for the disadvantaged.

Among other tax topics, LawHelp offers information about the earned income tax credit (EITC), which offers benefits to millions of low-income, working Americans. According to the IRS, an estimated 20 to 25 percent of those eligible for EITC are unaware of it and therefore don’t receive the benefits they’re entitled to. The IRS has information about EITC at www.irs.gov.

Another useful tax resource is I-CAN! E-File, a free electronic filing system.  I-CAN! E-File, which was developed by the Legal Aid Society of Orange County, can be used to file federal returns as well as state tax returns in California, Michigan, Montana, New York and Pennsylvania.  More information can be found at www.icanefile.org.

For taxpayers 60 and older who need assistance, AARP runs a free tax-preparation service staffed by volunteers.  More information is available at www.aarp.org/money/taxaide.

Federal Tax Credits for Consumer Energy Efficiency

The Federal Government offers several tax credits for installing energy efficient devices in your home. There are different levels of tax credits depending on if the house is an existing home, new construction, or second home. Rental units do not qualify for any of these tax credits. If you are renovating or adding on to your existing home, you can also take advantage of these credits.

You can receive a tax credit of 30% of the purchase and installation cost up to a $1500 limit if you install Energy Star listed doors and windows, add Energy Star certified insulation, or an Energy Star asphalt or metal roof. These items must be purchased after June 1, 2009 and meet the 2009 Energy Star requirements. You can also install energy efficient heating and air conditioning system or biomass stove in your home to receive the credit. This tax credit is available for an existing home which is your principle residence. The deadline to take advantage of this credit is December 31, 2010.

Adding a geothermal heat pump, residential small wind turbine, or solar energy system to your home can net you a tax credit of 30% of the purchase and installation cost with no upper limit. This credit is available for existing homes and new constructions. The credit can also be applied to energy efficient systems to both a principle residence and second home. The deadline to apply for this credit is December 31, 2016.

A new and upcoming technology is the residential fuel cell and microturbine system. Fuel cells use hydrogen to produce clean energy. You can receive a 30% credit up to $500 per .5 kilowatt of power capacity. This credit includes both the purchase and installation costs of the technology. Both new and existing homes qualify but rentals and second properties do not. This tax credit expires on December 31, 2016.

Adding energy efficient elements to your home can have a higher initial cost, but these tax credits make it easier and faster to recoup your investment. Taking advantage of the energy efficiency tax credits will help you save money now and save even more money in the long run.

When are Taxes Due?

April 18 is the deadline for filing US income tax returns

Generally, your tax return must be postmarked no later than April 15 or sent no later than that date if you’re filing electronically. When April 15 falls on a weekend, the deadline is pushed to the following business day.

Tax Day 2011 is Monday, April 18, for all US taxpayers.

Procrastinating with taxes is a familiar phenomenon, but if you don’t pull it together before the deadline, things can get tricky. If you know you won’t be able to file on time, or don’t have the money to pay, don’t ignore your taxes altogether. File an extension form on time and look into a payment plan. The IRS charges interest and does collect.

Koehler & Company Lanches New Website

Koehler & Company. launched its new website today to improve visitors’ experience while powerfully communicating the Company’s portfolio of innovative accounting solutions. The new site at www.cpakoehler.com offers improved navigation with graphics that better portray Koehler & Company leading role in Certified Public Accounting. It also puts users within just a few clicks of important information on Koehler & Company entire program line, and it illustrates the Company’s diversified market reach.

“We continue to make strategic investments in the technologies that will move Koehler & Company forward, and this website is no exception,” said Dean Koehler, Koehler & Company Director. “The site’s new look, feel and usability is now very much aligned with our position as the industry’s leader.

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Give us a call for personalized, informed, affordable service from accountants that care about you. Your initial one-half hour consultation is free. We want to give you a chance to determine that we are the right professionals for your needs.

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