WHAT YOU NEED TO KNOW ABOUT SOLAR ENERGY CREDITS

Many property owners are installing solar energy systems expecting to get a big federal income tax refund when they file their taxes based on the Solar Energy Tax Credit. Most of the time, these taxpayers are surprised to learn that the Solar Energy Tax Credits are not refundable and, therefore, cannot directly increase their income tax refund. Solar Energy Tax Credits are applied against the taxpayer’s computed federal income tax liability and can reduce that liability all the way to zero.  However, the credit cannot reduce the computed tax liability to less than zero and create a refund or increase the computed refund.

WHAT YOU NEED TO KNOW ABOUT THE NEW INCREASED STANDARD DEDUCTION

Most taxpayers (9 out of 10) use the Standard Deduction (as opposed to Itemized Deductions) to get from Adjusted Gross Income to Taxable Income. The IRS has increased the amounts of the Standard Deduction applicable to 2019 Income Tax Returns based on inflation. The following table shows the amounts of the Standard Deduction applicable to last year (2018) versus the increased amounts for this year (2019):

Filing Status                         2018              2019

Single                                 $12,000        $12,200

Head of Household            $18,000        $18,350

Married Filing Jointly         $24,000        $24,400

Qualifying Widow               $24,000        $24,400

Married Filing Separately $12,000        $12,200

There are additional standard deduction amounts for individuals 65 years of age or older and/or blind. There are limitations on the amount of the Standard Deduction for individuals who may be claimed as a dependent by another taxpayer.

WHAT YOU NEED TO KNOW ABOUT INJURED SPOUSE ALLOCATIONS

 An injured spouse is a taxpayer who files a joint return with their spouse and all or part of a refund is, or is expected to be, applied against

Generally, it is possible to prevent the taxpayer’s refund from being applied toward the debt of the spouse by filing a form.

Injured Spouse protection is applicable to the following types of debts:

  • Past-due federal tax.
  • Child or spousal support.
  • Federal non-tax debt (such as a student loan).
  • State income tax.
  • State unemployment compensation debts.

Generally, the injured spouse’s refund can be protected by filing IRS Form 8379-Injured Spouse Allocation if the following requirements are met:

  • The injured spouse is not legally obligated to pay the past due amount, and
  • The injured spouse meets any of the following conditions:
  1. The injured spouse made and reported tax payments such as federal income tax withholding.
  2. The injured spouse had earned income (W-2, self-employment, etc.) and claimed the Earned Income Tax Credit and/or the Additional Child Tax Credit.
  3. The injured spouse claimed a refundable tax credit such as an education credit or the healthcare Premium Tax Credit.

QUESTIONS? 

We are open Monday – Saturday 8:00 a.m – 6:00 p.m. through January 18th with extended hours through tax season to serve you with look back services and all of your tax preparation needs. We are here to  look back at your 2018 return to make sure you received the maximum return legally allowed by I. R.S laws.  We will be happy to provide a free consultation.

2914 East 32nd Street #102 in the Southside Shopping Center – Across from Applebee’s on 32nd Street.

We look forward to speaking with you and sharing Pat’s 40-plus years of tax preparation knowledge.

We have one of the most experienced staffs in the four-state area.  We focus all of our time, energy and training on getting you the largest refund possible based on your tax situation.

It’s easy to feel overwhelmed when considering the complexities of the tax code and the knowledge required to complete even the simplest of returns. Don’t sweat it!  We have the knowledge and experience required to help you meet your legal obligation to file a tax return and, at the same time, receive the largest possible refund for your tax situation.

We promise to provide the most current services for your tax needs and will do all we can to legally maximize your tax refund. Most returns can be done while you wait.

We are here to serve you, your family and friends. We offer more than 100 years of tax preparation experience, and a unique, low-pressure approach to personal and professional tax services.

We have an excellent client-retention rate and we are extremely proud of the high-quality services that our staff provide.  Check out our Facebook page to see the many recommendations that our clients have been kind enough to write.

Contact us today to learn more about what we can do to help you with these important matters. You won’t be disappointed when you choose the Four State’s fastest growing locally owned, tax preparation service, Joplin Tax Service, so contact us today.