Sure, I’m much more aware of my personal finances now, and made some very positive changes in 2007, but looking back, I realize I’ve also made some very-avoidable mistakes, for which I’m kicking myself.

My first mistake is also the most annoying to me, since I’ll be feeling the impact of this particular poor decision as I trudge through my tax filing in the next two months.

1. Failing to Utilize the Energy Tax Credit
A tax law change in 2005 meant to encourage energy-conscious home investments by consumers offered a ten percent tax credit for 2006 and 2007 purchases of energy-efficient exterior doors, windows, insulation systems, metal roofs, furnaces and water heaters.

The credit, up to $500 in total, could be split across the two years.

In 2006, I was thrilled to take a $140 tax credit for new windows I’d purchased for my home, but planned to use the remaining $360 credit for door and window purchases in 2007.

I knew I needed to buy several exterior doors, knew they’d be expensive, had all year to make the purchases, and yet I failed to do so. My rationale? I figured that if I kept haunting the returned special order bins at Home Depot and Lowe’s, I’d eventually find dirt-cheap doors, and the savings would justify the wait.

Now it’s the first day of 2008, I still have no doors for my home’s impending remodel, and I lost out on a $360 tax credit I badly needed to offset my 2007 income.

The only way to make up for this now is if I really do find an insane deal on the doors I need, and with a month left until I need them for the remodel, that’s not looking likely.

I have 4 more mistakes to share; stay tuned.

Treasury and IRS Provide Guidance for Energy Credits for Homeowners [IRS]
Rebates and Tax Credits for Windows, Doors, and Skylights [EnergyStar.gov]

Tagged as: energy, mistakes, Taxes

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