Tax Law Changes That Can Increase Your Refund

Every year, it never fails that the government implements changes to the tax laws right before it’s time to file your return. While this year’s tax season is a little delayed because of the shutdown in 2013, you can still begin you return now so it’s ready to file on January 31st. The IRS expects you should get your return within 21 days or less from the day you filed.

Three Ways You Can Be Refunded More

There have been several changes to the tax laws that many people really won’t the effects of. However there are a few that can certainly increase the amount you are refunded. This can be great news if you typically find yourself owing more taxes.

The American Opportunity Tax Credit

This tax break impacts anyone that’s paying college education related expenses. For example, you can receive up to a $2500 credit for tuition and related expenses depending on your income and filing status. It doesn’t matter if it’s your tuition, a spouse, child, or other dependents. Congress extended this credit until the end of 2017.

Alternative Minimum Tax Changes

This change will affect some middle to high income taxpayers. Earlier in 2013, Congress made the “AMT” patch to permanently prevent taxpayers from paying AMT in the future. The exceptions are:

  • $51,000 for single and head of household filers
  • $80,800 for married couples filing jointly and qualifying widow(er)s
  • $40,400 for married people filing separately.

These amounts may change with inflation.

Energy Efficient Credit Changes

Tax Law Changes That Can Increase Your Refund

If you’re a taxpayer that made any energy efficient changes to your home you may be qualified for a credit up to 30% of the cost of the expense up to $500.
Also, highway-capable battery-powered plug-in vehicles and plug-in hybrids purchased or leased new may be available for a credit up to $7500, depending on the battery capacity. However this credit will begin to fade out after the manufacturer has sold 200,000 qualifying vehicles within the US. Below are listed the vehicles that qualify for this credit during the 2013 tax return season.

Get Ahead Now

Just because you have bad credit doesn’t mean that you can’t purchase a new vehicle that is energy efficient to count towards your 2014 tax return. At Auto Credit Express we have helped plenty of people in your same position buy new and used vehicles with poor credit or even bad credit for years. Simply use our easy online application and we’ll find a local dealer in your area that is ready and able to find the best options for bad credit auto financing. Apply today!

Sources
ase.org
turbotax.intuit.com

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Vehicle Year and Model Credit Amount
2014 Accord Plug-in Hybrid $3,626
2012 AMP GCE & MLE EV $7,500
2011/2012 Azure Dynamics
Transit Connect EV
$7,500
2012 BYD e6EV $7,500
2013 Fiat 500e $7,500
2010-2012 CODA Sedan $7,500
2011-2012 EVI Medium Duty &
Walk-in Electric Trucks
$7,500
2010 EMC Model E367,
E36t, and E36v
$7500
2012 Fisker Karma Sedan $7500
2012-2014 Ford Focus Electric $7500
2013 Ford C-MAX Energi $3751
2013/2014 Ford Fusion Energi $3751
2011-2014 Chevy Volt $7500
2014 Chevy Spark EV $7500
2013 Mercedes-Benz Smart
Coupe/Cabrio EV
$7500
2012 Mitsubishi i-MiEV $7500
2011-2013 Nissan Leaf $7500
2011 Smart Fortwo
Electric Drive Vehicle
$7500
2008-2011 Tesla Roadster $7500
2012 Tesla Model S $7500
2011 Think City EV $7500
2012/2013 Toyota Prius
Plug-in Electric Drive Vehicle
$2500
2012/2013 Toyota RAV4 EV $7500
2011 Wheego LiFeEV $7500