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Video instructions and help with filling out and completing How Form 5495 Payments

Instructions and Help about How Form 5495 Payments

Hey there, YouTube! So today, I wanted to go over the residential energy credit available for U.S. taxpayers. This credit is available to U.S. persons who own a home during the tax year and spend money refurbishing or rehabbing their home to make it more energy-efficient. So, if you're renovating your property or adding on to something and implementing these so-called green initiatives, if they're qualified projects, you might be able to get a tax credit for the amounts that you paid to the contractor to develop the energy-efficient improvements. One of the most common examples I see on a regular basis every year is putting in solar panels. So, if you decide to add solar panels to your roof to supplement the cost of the energy in your property (you're not totally off the grid yet), but you bought solar panels to charge batteries and run a part of your home, you can actually take a credit for those improvements. In this example, we have John Smith, a taxpayer in the U.S. who has a job and just decided to rehab his property and install solar panels on the roof. The total cost of the solar panels was $14,500. Let's see how this results in a tax credit for John. The form that you need to file with your tax return every year for incurring these costs is the 5695. They break that into a couple of categories. For solar electric property costs, in this case, John did solar electric and the improvements he made were the solar panels on the roof. When you speak to your contractor or developer, ask them about this credit because what's really important is to make sure that the improvements are going to qualify, and then you're going to want to have adequate documentation. In the event that...