5 home improvements that can lower your taxes

Savvy Home Improvement Projects for the Budget Conscious

As you're preparing your taxes this year, don't forget to consider how your home might help you reduce your tax burden.

Homeowners who make various upgrades throughout the year can qualify for a variety of tax credits, as can folks who work out of their home. (If you're looking to maximize your refund, you can also find a quick guide to tax deductions and exemptions here.)

Here are five things to review to see if your home and its contents can help you get a tax break.

1. Solar & Other Alternative Energy Sources

If you've improved the energy efficiency of your home by installing any renewable energy sources, you could be eligible for tax credits to offset some of the costs. For instance, the Residential Energy Efficiency Property Credit offers a credit for installation of solar, wind, geothermal and fuel-cell technology.

2. New Doors, Windows & Insulation

The Nonbusiness Energy Property Credit provides a tax break for homeowners who make certain upgrades including insulation, exterior doors and windows.

3. A New Roof

Just like installing new doors and windows, a new roof can also get you a tax credit under the Nonbusiness Energy Property Credit. According to the IRS, it applies to "any metal roof with appropriate pigmented coatings or asphalt roof with appropriate cooling granules that are specifically and primarily designed to reduce the heat gain of your home."

4. New Air Conditioning & Water Heating Systems

The same goes for these home necessities. The Nonbusiness Energy Property Credit provides a tax break for a number of home upgrades involving energy efficiency. A tax professional may be able to help you determine if specific projects in the aforementioned areas of your home qualify.

5. Major Appliances

Tax credits for Energy Star appliances are largely no longer available, but if you bought a new refrigerator, washer and dryer, or other major appliance, you'll want to check the Energy Star Rebate Finder for info on the rebates your local utility might provide. If you're planning to purchase a major appliance, you can also check that site to see which retailers near you participate in their programs.

Want to learn what other projects might qualify? You can find the full list of home improvements that can lower your taxes here.

Related Articles

This article originally appeared on Credit.com.

RELATED: Cities with the least expensive rent
10 PHOTOS
least expensive rent (BI article page)
See Gallery
5 home improvements that can lower your taxes
10. Cleveland, Ohio
9. Jacksonville, Florida 
8. Phoenix, Arizona
7. San Antonio, Texas
6. Cincinnati, Ohio
5. Columbus, Ohio 
4. St. Louis 
3. Las Vegas, Nevada 
2. Kansas City, Missouri
1. Indianapolis, Indiana
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

Tax Reform Changes That Impact Your 2018 Taxes

With all of the buzz about the new Tax Reform many taxpayers are questioning how this will affect their 2018 tax return. These provisions kicked in on January 1, 2018, which means that they will impact your 2018 tax return.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com

Video: What Are Income Taxes?

Income taxes are a percentage of money that you pay to the government based on every dollar of taxable income. Learn about income taxes with help from TurboTax in this video on tax tips.

Read More

Brought to you by TurboTax.com

Rules for Claiming a Dependent on Your Tax Return

Claiming dependents can help you save thousands of dollars on your taxes. Yet many of us are not aware of who in our family may qualify as our dependent. Review the rules for claiming dependents here for a qualifying child or relative.

Read More

Brought to you by TurboTax.com
Read Full Story