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Are New Windows a Tax Deduction?

Home improvements are a popular way for taxpayers to claim a tax credit and upgrade their homes in the process. For new windows, it’s possible to make a tax deduction. The current tax credits for home improvements are expected to remain in their current form for the next five to seven years.

Claiming New Windows on Your Tax Return

There is a range of different window types that qualify for a tax deduction, including casement, egress, and double-hung. The stipulation is that they must meet Energy Star standards.

Partial improvements are also eligible, so you don’t need to replace every window in your home to qualify for this tax credit. It also applies if you added a window that wasn’t there previously.

You may claim 10% of the total cost, up to a maximum of $200, for new windows.

Claiming New Doors on Your Tax Return

Any entry, interior, and garage doors you installed this past tax year are also eligible for a tax deduction. Like with new windows, they must meet the standards of Energy Star.

Again, partial replacements are also eligible, as are adding new doors that weren’t there previously.

You can claim 10% of the cost of new doors, up to a maximum of $500.

Can You Claim a Tax Deduction for Vinyl Siding?

Vinyl siding is not eligible for a Federal tax deduction. But many states have a sales tax deduction on vinyl siding. States like Minnesota allow you to deduct all sales taxes on the cost of vinyl siding. Just remember to keep the receipts.

The sales tax deduction applies to new installations and replacements for vinyl siding.

How to File for Your Tax Deduction or Your Sales Tax Deduction

You should only file for deductions if you kept the certification statement issued by the manufacturer. In the event you get audited, you’ll need to present these statements to the auditor, or it could be revoked.

For sales tax deductions, you’ll also need to maintain the same receipts. You should check the requirements with your state to make sure, though. Many states don’t offer the same deductions.

Make sure you check the Energy Star website for a list of the different windows and doors that meet Energy Star requirements. These requirements change all the time, so it’s better to be safe than sorry.

If you have trouble filing, you may want to consider using online tax filing software to help you file. They will make it easier to claim the energy tax credit.

They will ask you simple questions about your expenses, tell you which deductions you qualify for, and fill in all the right forms for you.

For any Federal energy deductions, you’ll need to fill out Form 5695, which will be done automatically when you file online.