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It’s that time of year!  The time when you have to collect all of you paperwork and hand over that shoebox to your trusty tax advisor, or perhaps you are taking a stab at doing it yourself online.  Either way, there are a few things you should know about when preparing for the approaching deadline.

Tax Day is April 18, 2011

Procrastinators rejoice!  April 15 or “Tax Day,” is the traditional due date for federal income taxes.  However, in 2011, they’re due April 18 in observation of Emancipation Day, which is a public celebration in the District of Columbia.  It is a non-working day in the nation’s capitol, but because it falls on a Saturday, it will be observed on Friday instead. This means that all of Washington, D.C. will be “closed” on April 15, including the Internal Revenue Service (IRS), so you get three more days to procrastinate. But you won’t do that, right?

Filing for an extension? While the traditional tax return extension filing deadline is October 15 of each year, the IRS has approved October 17, 2011 as the deadline for 2010 tax returns with extensions because October 15 also falls on a Saturday this year.

Here’s a few tax tips for homeowners so you can make the most of this year’s tax season.

Popular Tax Credits for Homeowners

Typically, a tax credit is more valuable than an equivalent tax deduction because a credit reduces tax dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed. There are various credits available to eligible taxpayers.  The Earned Income Tax Credit, Child Tax Credit and the Retirement Savings Contributions Credit are just a few that are claimed by many Americans.  For more details on these credits, call 800-TAX-FORM (800-829-3676).  Here are a few of the most popular credits for homeowners:

Homebuyers Tax Credits - 2010 is the last tax filing year to benefit from the “first time home buyers’ credit” on the purchase of a new home up to $8,000. The credit is available to those who have not had ownership of a primary residence for three years prior to the purchase, and is for homes bought before October 1, 2010 with a binding agreement to buy the home before May 1, 2010.

The “repeat homebuyers’ credit” (limit of $6,500), is available for consumers who entered a contract to buy a home by April 30, 2010 and closed on the sale before October 1, 2010.  To claim the credit, you must have owned and used the same home as a primary residence for five straight years.

Energy Efficiency Tax Credits – If you purchased and installed items such as energy-efficient windows, heating and cooling equipment, insulation, roofs or doors, you can receive an energy efficiency tax credit up to $1,500 for improvements that took place between January 1, 2009 and December 31, 2010.

Homeowners who install solar energy systems or items such as geothermal heat pumps, receive a 30 percent tax credit for systems installed before December 31, 2016.

The Energy Efficient Appliance Standards program gives homeowners the opportunity to earn tax rebates for appliances such as furnaces, water heaters, washing machines, refrigerators and more. Rebate amounts will vary depending on the cost of the items purchased.

Check out the Database of State Incentives for Renewables and Efficiency (DSIRE) for information on federal, state, and local incentives.

Here is a list of the most popular tax credits for homeowners available for 2010 income tax season:

• Earned Income Tax Credit
• Child Tax Credit
• Retirement Savings Contributions Credit
• First Time Home Buyers Credit
• Repeat Home Buyers Credit
• Energy Efficiency Tax Credit

Homeowners Tax Deductions

Homeownership has several advantages via tax deductions.  You can take the interest on the mortgage of your primary residence and one additional residence as an itemized deduction.

If you paid discount points for a refinance on your home loan, it can be deducted over the life of the loan.  If you paid points for the purchase of a home, it is deductible in the year paid.

If you acquired private mortgage insurance on or after January 1, 2007, you can deduct the mortgage insurance premiums as mortgage interest through 2010.

Homeowners can also exclude up to $250,000 of gain on the sale of their homes (up to $500,000 for joint filers) if they have owned and lived in their primary residence for two of the last five years before the sale.

Here is a list of the most popular tax deductions for homeowners available for 2010 income tax season:

• Mortgage Interest
• Real Estate Taxes
• Mortgage Discount Points
• Private Mortgage Insurance
• State and Local Income Taxes
• Seller Concessions
• Home Office
• Home Improvements for Health-Related Issues

Remember, before applying tax deductions or credits, please contact a tax professional.

The IRS Goes Mobile

The IRS wants to keep up with your busy lifestyle.  They released IRS2Go, a free smartphone application that lets you check on the status of your federal tax refund and learn helpful tax tips. Apple users can download the application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the app.

It’s easy to use – simply enter your Social Security number, which is encrypted for your security. Then select the filing status you used on the tax return and enter the approximate refund amount. If you e-filed, you can access your refund information through the app within 72 hours after you get an e-mail saying the IRS received your documents.  If you filed using paper, you will likely have to wait up to four weeks before you can check your refund status.

By entering your email address, you can receive tax tips, which are issued daily during tax season and periodically the rest of the year.

The IRS also uses tools such as YouTube and Twitter to share the latest information on tax initiatives and services through social media.

If you prefer more traditional communication and want to read all there is to know about your 1040, check out this PDF,visit www.irs.gov or call toll-free at 800-829-1040.

Tax time doesn’t have to be stressful, so grab your shoebox or your laptop, and laugh in the face of a three-day extension!

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