The recent Bipartisan Budget Act renewed some tax breaks that could help your bottom line this tax season.
The Internal Revenue Service has announced that it’s now ready to process 2017 tax returns — due on April 17 — with four newly extended “green” tax breaks. They are the credits for:
- Residential energy claimed on Form 5695
- Alternative motor vehicles claimed on Form 8910
- Qualified plug-in electric drive motor vehicles claimed on Form 8936
- Certain two- or three-wheeled vehicles claimed on Form 8936
These tax breaks technically had expired after tax year 2016, meaning you could no longer claim them. But the Bipartisan Budget Act, signed into law in February, retroactively renewed them for tax year 2017. So, if you’re eligible for these credits, you can claim them this tax season — but not after that.
If you already filed your tax return this year, you still can claim these credits by filing an amended return — what the IRS calls Form 1040X.
Unlike regular tax returns, though, amended returns cannot be filed electronically. And the IRS says it can take up to 16 weeks for an amended return to be processed.
Still, the annoyance of having to file an amended return could be well worth it, since tax credits are the best kind of tax break. Check out “Pop Quiz: Is It Better to Have a Tax Credit or a Tax Deduction?“:
“A tax credit wins every time. The reason is simple. A tax deduction lowers your taxable income, while a tax credit lowers your tax bill dollar for dollar.”
What’s your take on this news? Share your thoughts below or over on our Facebook page.
How to find cheaper car insurance in minutes
Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.