Just FYI, if you undertake some home improvements which qualify for the Federal Residential Engery Tax Credit, take what tax advice the contractor gives you with a grain of salt - because they may very well be wrong.
I've run across two instances where the contractor as been incorrect. One was for me personally. The contractor gave us a form when we did our insulation last summer saying that we could take X amount as a credit on our return. When I was doing our tax return, I looked up the acutal IRS instructions (cuz that's how I roll), and discovered that what we were entitled to was actually slightly less.
And then I'm just doing a client's return. They had some windows installed and were given a glossy brochure from Home Depot describing the tax credit. On the brochure, it stated that the credit allows only for the cost of the material and not for the cost of installation.
Nope. Per the instructions for Form 5695, under the heading Residential Engery Property Costs: "Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the energy property."
So there you have it. Also, don't have a car dealer do your taxes.
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