Some tax law is permanent. Or, it’s permanent until it’s changed. Some tax law is temporary with an expiration date. We all hope that the law is made permanent at some stage, but often the expiration is just extended a few years down the line. That’s what is known as a tax extender.
If you are relying on temporary tax law that has expired, you hope that Congress extends it before the end of the year. Sometimes they don’t.
That’s what happened in this case. The IRS had temporary tax credits for energy-efficient changes to your home like special windows. It expired for 2018 and we heard nothing.
Now they’ve extended the tax credit through 2020 and picked up 2018 too. You can take a total tax credit of 10%, up to $500 total. If you want, you can amend your 2018 tax return to pick up the credit.
However, remember that an amended tax return means that the auditor gets to see your return one more time to decide whether you’re audit material. And the statute of limitations is extended to 3 years from when you file. If you file an amendment now, the clock starts over again now.
There are 3 parts to a successful tax strategy. First, there is the strategy itself. Then, secondly, it’s the complete and legal implementation of that strategy. And finally, the third part is reporting the tax based on that strategy.
What do you need help with now? Give us a call at 888-592-4769. If it has to do with taxes, we can help.