The Internal Revenue Service does not allow you to take a deduction for hurricane shutters, but it does allow you to take a credit on your taxes for installing energy-efficient hurricane doors and glass windows. This credit is provided by the American Investment and Recovery Act. You can only receive a credit for the cost of these windows if the manufacturer identified them as energy-efficient. Previously, some states permitted taxpayers to deduct the cost of hurricane shutters, but these programs no longer exist. Check your state tax laws each year to determine whether the state re-enacted its shutter deduction.
Read the specification information about your windows and doors. This information should have been provided to you by the seller at the time of installation. A certificate or statement will identify whether they satisfy energy-efficient standards and qualify you for a credit. If you cannot locate this information, contact the windows' seller or manufacturer. Either should be able to determine whether your windows are energy-efficient or provide you with a certificate stating such.
Compare your windows and doors' specifications against those set by the Department of Energy. This information can be found on the Department of Energy website. To receive a credit, the windows or doors must have been installed on your principal residence in 2009 or 2010.
Determine the cost of your windows and doors at the time of purchase. Their cost does not include installation charges, taxes, shipping or other fees. For 2010, the credit for windows and doors is 30 percent of their cost, up to a maximum of $1,500. Consult the Department of Energy's website to ensure that your calculations of the cost of your windows and credit conform to the rules established by Congress. Note that the 2011 tax credit for the windows is $200 and for doors 10 percent of their cost, up to $500.
Credit your taxes with the cost of your windows and doors. This actually means to subtract the amount of your energy-efficient improvements from your income. If either cost surpasses the maximum credit amount, you are only allowed to credit yourself the maximum amount. A credit is a dollar-for-dollar above the line reduction in your taxable income.
Complete the 2010 IRS Form 5695 and submit this form with your taxes. Your credit for windows is claimed on line 2b of this form, and your credit for doors is claimed on line 2c. If you are completing a 1040, this credit is also claimed on line 52 of that form.
Tips & Warnings
- This article is not intended to provide financial or accounting advice. If you have a question about your taxes, seek professional advice.
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
Is a Health Insurance Premium Tax-Deductible?
Premiums paid for health insurance can be tax-deductible depending on what is required for the tax return. Most medical expenses that are...