Typically during the hot months of summer or during the cold months of winter energy prices tend to soar. Nothing is more upsetting than receiving an electric bill that looks more like a brand new car payment! Rather than just paying the bill, many people are considering alternative sources of energy. The best part about it is that there is a tax credit available to help you save money on your tax return. The residential energy efficient property credit is still available to help pay for qualified residential alternative energy equipment. The equipment includes solar hot water heaters, solar electricity equipment and wind turbines. The credit runs through 2016 and is 30 percent of the cost of qualified property. There is not a cap on the amount of credit available, except for fuel cell property. Generally, you can include the cost of labor and the best thing is you can carry forward any unused credit amounts to future years. Qualified equipment must be installed on your home located in the United States. Before you buy, make sure you have the manufacturer’s tax certification statement. Energy bill fluctuations can be a pain but the residential energy efficient property credit could save you money down the road. For more information on this tax credit, visit our Knowledgebase here.

The American Opportunity Tax Credit is set to expire after December 31, 2012 unless it is extended by Congress. The American Opportunity Tax Credit is a refundable tax credit for undergraduate college expenses. The credit provides up to $2,500 in tax credits on the first $4,000 of qualifying education expenses. Up to 40% of the credit is refundable, meaning that it can generate a larger refund. If you qualify, the American Opportunity Tax Credit can be used to offset higher education expenses paid in 2012. The American Opportunity Tax Credit provides qualified students or eligible parents with a great tax deduction. During this summer break, eligible tax payers need to ensure they are set to receive the full benefit of the tax credit. Eligible tax payers should consider paying their 2013 tuition expenses in 2012 in order to receive the full entitlement of the American Opportunity Tax Credit before it expires. For more information on this tax credit, visit our Knowledgebase here.

Summer’s here! For some Americans that can present a problem if you have children because they are no longer in school and you have to work! Oh what to do, what to do?! Why don’t you send your child to summer camp? They will enjoy fun activities and you might be eligible for a deduction on your tax return. Summer day camp can be used as a deduction for the child and dependent care credit. You can even enroll your child in camps that specialize in a particular activity, such as computers or soccer. Enroll your child today and you can relax knowing that he or she is safe and having fun during the summer. In order for you to take the child and dependent care credit, the camp expenses must allow you to work or look for work. If your married, generally you and your spouse must work or look for work. Your spouse is treated as working during any month he or she is a full time student or is not physically or mentally able to care for himself or herself. Summer day camp can be exciting for your child and it might save you some money on your tax return. Look into enrolling your child in a participating summer day camp and get yourself a possible tax deduction.

Many people go throughout the year leaving money on the table when it comes to filing tax returns. Many feel they shouldn’t file because they earned very little income; CAUTION this could be a huge mistake! People across the U.S. realize that the IRS has income requirements based on filing status, age, and type of income that needs to be met before you are required to file a tax return. However, many people don’t know that you should file even if the IRS doesn’t require it. Everyone knows that understanding taxes isn’t the easiest thing but a simple check could fatten your wallet. Here are seven points you should consider before deciding not to file: 1. Federal Withholdings From Your Income - Practically everyone allows their employer to withhold Federal and State taxes from their pay throughout the year. Many people even make estimated tax payments or have a prior year overpayment applied to this year’s tax. If this year’s tax is less than your payments you are due a refund. 2. Earned Income Tax Credit - For some tax payers that work but did not earn a lot of money, you may qualify for the Earned Income Tax Credit if you meet all the requirements. The Earned Income Tax Credit is a refundable tax credit that is treated as a payment to help offset taxes and whatever is left over can be used to increase your refund. The Earned Income Tax Credit for tax year 2011 can be as much as $5,751 if you qualify. However, the only way to know if you are eligible for the Earned Income Tax Credit is to file a tax return. 3. Additional Child Tax Credit - This is another refundable tax credit that may be available to you if you have at least one qualifying child and you didn’t get the full amount of the Child Tax Credit. 4. American Opportunity Tax Credit - This partially refundable tax credit is available to students or parents/ guardians that are eligible to claim the student. Students in their first four years of college may qualify for the credit. As much as $1,000 can be refunded back to you for each eligible student. 5. Adoption Credit - If you have adopted a child you may be able to claim a refund on qualified expenses you paid to adopt an eligible child. 6. Health Coverage Tax Credit - Eligible candidates must be a Pension Benefit Guaranty Corporation payee or Trade Adjustment Assistant recipient who receives Trade Readjustment Allowance (TRA) or Unemployment Insurance in lieu of TRA. If you qualify and pay 100% of your health plan premiums throughout the year, you can claim and be refunded 65% of your payments on your tax return. 7. First Time Homebuyer - Service members that meet certain time periods outside the United States on qualified extended duty may qualify for up to $8,000 if they meet requirements for the First Time Home Buyers Credit. As you can see, it can possibly cost you thousands of dollars if you decide not to file without looking into it. TaxSlayer.com can help by simply starting a tax return and letting our software guide you on your way to ensuring you receive the maximum refund possible. We guarantee it!