Just bought a new stove and should get the tax credit. Was wondering if the same applies for all the installation pipe and chimney??? Or even the materials to build a new hearth???
Can you get the tax credit for stove and chimney pipe??? How about hearth supplies???
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Yes. Craig has it posted at the top of the forum in the Info section:
https://www.hearth.com/econtent/index.php/forums/viewannounce/38796_2/
https://www.hearth.com/econtent/index.php/forums/viewannounce/38796_2/
It is a credit and not a rebate, so if you don't owe taxes you won't get any money back but it can carry over to next year so if you owe next year you will get the credit if I understand right.
barrettdp said:
I wondered about this myself, but I doubt it covers that. If someone knows for sure that it does, I'm buying some gear as soon as the shop opens after christmas! I have a couple hundred more before I hit my limit.
Are there really folks here who dont owe taxes?woodsmaster said:
No, that's not true. If you get a refund at the end of the year (based on what you've paid into taxes through your paycheck, if it's determined they took too much out) then the 30% of whatever you paid for the stove is added onto your refund.
I plan on including pretty much everything I can- the floor supports I did so it wouldn't fall through, the materials to build the hearth, the stove, the install, everything.
~Rose
I plan on including pretty much everything I can- the floor supports I did so it wouldn't fall through, the materials to build the hearth, the stove, the install, everything.
~Rose
RoseRedHoofbeats said:
Have you talked to your tax addviser ? I no that for windows, insulation and stuff like that labor is not eligable.
►►OhioBurner◄◄™ said:
Many familys with children on a low income get more back than they pay in. In this case they will not get a bigger return from a biomass investment.
Like I just said, you DO get a bigger return with the tax credit. Talk to a tax advisor or do one of the tax return estimation calculators, or one from last year, and you'll see your return. It does get added to the amount you receive back.
For stoves, the installation and materials ARE included in what is allowed to claim on your taxes. So long as you kept your receipts in case you're audited, you're good as gold.
~Rose
For stoves, the installation and materials ARE included in what is allowed to claim on your taxes. So long as you kept your receipts in case you're audited, you're good as gold.
~Rose
I'm no CPA, but a friend is, and he said that one cannot get back more than he paid in, regardless of tax credit. That is why it's called a tax credit, it is a credit against taxes either paid already or owed. So, if you paid in $300 in taxes, and you have a stove credit of $500, you will get back $300. I don't know about a carry-over provision to the subsequent year, I didn't ask as I have no credit coming in any case. I know for certain there's a carry-over for credits for renewable energy stuff [solar water heating, etc.]
But I'm no CPA. I hope I'm wrong, I'm all for people getting back all they can. I bought a stove, but it isn't eligible.
And, as has been stated already, check with a tax pro' before committing, if the credit is a deciding factor in the decision to spend the cash.
But I'm no CPA. I hope I'm wrong, I'm all for people getting back all they can. I bought a stove, but it isn't eligible.
And, as has been stated already, check with a tax pro' before committing, if the credit is a deciding factor in the decision to spend the cash.
This question has been asked and answered many, many times.
http://www.woodpellets.com/heating-systems/taxcredit.aspx
What is a federal consumer tax credit?
It is a credit that taxpayers can claim on their federal income tax return at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay. It is not a tax deduction, which lowers your taxable income.
~Rose
http://www.woodpellets.com/heating-systems/taxcredit.aspx
What is a federal consumer tax credit?
It is a credit that taxpayers can claim on their federal income tax return at the end of the year. The credit then increases the tax refund or decreases the amount the taxpayer has to pay. It is not a tax deduction, which lowers your taxable income.
~Rose
RoseRedHoofbeats said:
On this link read under top 10 questions - how can I detrimine if I can collect the credit. explains it pretty well. You CANT get more than you pay in taxes. It does NOT increase the refund if you didn't owe or pay any taxes.
I asked this same question to my accountant and she said that even if I was to get back, say 500 dollars on my taxes after all was said and done, and that I'd qualified for 1000 dollars tax credit due to intalling a wood stove, I would be getting back 1500 dollars total. Getting the tax credit has absolutely nothing to do with weather or not you owe taxes or are due a refund.
check out link below
2009 Form 5695
Residential Energy Credits
Form 5695 Department of the Treasury Internal Revenue Service Residential Energy Credits © See instructions. © Attach to Form 1040 or Form 1040NR. OMB No. 1545-0074 Attachment 2009 Sequence No. 158 Name(s) shown on ...
http://www.irs.gov/pub/irs-pdf/f5695.pdf - 107.2KB
2009 Form 5695
Residential Energy Credits
Form 5695 Department of the Treasury Internal Revenue Service Residential Energy Credits © See instructions. © Attach to Form 1040 or Form 1040NR. OMB No. 1545-0074 Attachment 2009 Sequence No. 158 Name(s) shown on ...
http://www.irs.gov/pub/irs-pdf/f5695.pdf - 107.2KB
This page shows what I'm trying to say. http://energystar.supportportal.com...?deptID=23018&task=knowledge&questionID=16201
What I want to know (and I expect many of you do also) is whether we can claim the value our time reading and corresponding to discussions about energy efficiency as a tax deduction.
RoseRedHoofbeats said:
Rose I think this is just a miscommunication. Look back at the first post from woodmaster he isnt saying if you dont owe at the end of the year you wont get the credit, he is saying if you dont owe taxes period you wont get a credit. Just because some folks get a hefty refund doesnt mean they dont 'owe' taxes, it just means they overpayed the taxes that they owe.
I just didnt realize some folks dont owe taxes at all??? Or that some folks get back more than they owe. I'm just not good at tax stuff, I rather hate dealing with it...
And for the record when I made my original post I thought when you said "How about hearth supplies???" I was thinking tongs and poker and ash bucket not bricks and slate and whatever. My interest in the thread was whether it pertained to buying a new set of stove tools...
Well I don't have tax codes memorized or anything like that, but I've been getting back more than what I put in for the last 8 years or so. Granted it's probably child tax credits putting me over the top, but nevertheless total refunds have consistently been more than what I paid. I use h&r's online system, and once went to a pro in person just to make sure what I'm seeing is right, and has been pretty much consistent every single time. So you can get back more than what you put in, but is not necessarily actual taxes you're getting back, but credits on top of your refund or whatever. Seems to be my case anyway. That said, my understanding is you get 30% back on total installation costs paid before 12/31/2010, labor and all, up to $1500 I think it is. Someone please correct me if I'm wrong.
jesusislord said:
That sounds right I did a little research and the labor and materials are included on the biomass but not on the windows doors etc.
I'm not on here to argue. I just don't want an unsuspecting family to think they're going to get 1,500.00 back when their actually not eligible.
This is pulled directly from the Dept of Energy website. at (broken link removed)
The credits are nonrefundable, that is, the credits are only available to the extent you have a tax liability. For 2010, the credits for home energy improvement products eligible through 2010 may be limited if you are subject to the Alternative Minimum Tax (AMT).
In other words, your credit is limited to your liability, meaning if you pay no tax what so ever, or get a refund equal to or greater than the amount of tax paid, then you get no credit. If you pay any federal tax at all, the credit is limited to that amount.
It does not mean if you owe any, or if you get any back, it is limited to your liability and total federal income tax paid throughout the year.
hope that clears that up.
The credits are nonrefundable, that is, the credits are only available to the extent you have a tax liability. For 2010, the credits for home energy improvement products eligible through 2010 may be limited if you are subject to the Alternative Minimum Tax (AMT).
In other words, your credit is limited to your liability, meaning if you pay no tax what so ever, or get a refund equal to or greater than the amount of tax paid, then you get no credit. If you pay any federal tax at all, the credit is limited to that amount.
It does not mean if you owe any, or if you get any back, it is limited to your liability and total federal income tax paid throughout the year.
hope that clears that up.
The Dude
Member
Just an extra bit of info since I just finished up with the relevant tax credit issue on my own 1040...if your total amount of credits that you take on page 2 of your 1040 exceeds the amount of taxes due on line 46, it seems that the credits become limited so that they cannot exceed your tax. All of the credits I qualified for had worksheets that made you state the tax amount on line 46, and then also deduct any other credits that came on lines before the credit you are calculating.
For instance, I normally qualify for the child tax credit, but because of my wood stove energy credit and another one, I was limited to only $486 that I could claim for the child one. So basically instead of getting $1500 credit for the wood stove, I'm really only getting $1000.
This supports what Rose was trying to say. However, I have heard someone else with a lot of kids tell me what J.I.L. said above, that they not only don't owe tax for the year, but the the IRS ends up paying them. So I'd like to figure this out.
For instance, I normally qualify for the child tax credit, but because of my wood stove energy credit and another one, I was limited to only $486 that I could claim for the child one. So basically instead of getting $1500 credit for the wood stove, I'm really only getting $1000.
This supports what Rose was trying to say. However, I have heard someone else with a lot of kids tell me what J.I.L. said above, that they not only don't owe tax for the year, but the the IRS ends up paying them. So I'd like to figure this out.
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