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The federal solar tax credit, formally known as the solar Investment Tax Credit (ITC), is a credit equal to 30% of the qualified system costs of installing a photovoltaic (PV) solar system. The ITC was established as a part of the Energy Policy Act of 2005 in an effort to boost the US renewable energy market.
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Increase Retirement Contributions. These additions are also made on a pre-tax basis, resulting in the same direct reduction to taxable income, and ultimately total tax liability. For the 2018 tax year, contributions cannot exceed $5,500, with an additional $1,000 allowed for those age 50 and above.
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Steps to Reduce Your Tax Liability . 1. Save Tax on Rent Payment . Expenses on your rent payment are eligible for tax deductions. You can subtract the amount paid for home rent from your gross income. However, there are certain conditions under this deduction; you can use an HRA calculator to find out your HRA tax benefits. 2.
The income limits in 2017 were slightly lower. However, you might not know your full tax liability for months. As such, under the previous tax laws, you could essentially undo this transaction with.
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You can further reduce the tax liability by claiming a deduction of Rs 50,000 if you have invested in NPS as it is eligible for extra deduction over and above Rs 1.5 lakh limit of Section 80C. Here.