10 Phat Tax Breaks

CNN Money has got ten “secret” deductions to use this year. Yeah, that phone tax rebate that everyone won’t shut up about is there, but there’s also…

Take credit for being efficient. You can take a 30 percent credit up to $2,000 for the cost of solar water heating or photovoltaic equipment in your home. You can get a 10 percent credit up to $500 for insulation and heat-reducing metal roofs, and up to $200 for energy-efficient windows. Labor costs, though, don’t count.

Pick your state tax. You may either deduct your state and local income taxes on your federal return or the state and local sales taxes you paid, whichever is higher. If you don’t have all your receipts, you can use the Optional State Sales Tax Tables in IRS Publication 600.

Handily, the article also links to the necessary forms. — BEN POPKEN

10 don’t-miss tax breaks [CNN Money via Lifehacker]

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  1. synergy says:

    Does anyone know what form and on what line this state tax deduction goes onto? I spent the weekend figuring out if my local tax changed anytime last year and now I need to know where to itemize it.

    By the way, don’t forget to deduct the taxes paid on student loans! Because I always deduct the loan taxes I have the 1040A.