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Anyone who replaced an old household appliance like a dishwasher or
refrigerator with a new energy-efficient unit may also be able to
claim a small credit. The credits range from $25 to $225, and are
based on the type of appliance and its energy efficiency. Medical-related expenses A taxpayer or dependent who has a medical condition that requires renovation to a home may be able to claim the cost of that work as a medical expense. Medical expenses are only deductible to the extent they total more than 7.5 percent of adjusted gross income, which is a high hurdle. But if you installed a ramp, widened doorways or did other work such as, lowering countertops to accommodate a wheelchair, it may be far easier to reach that threshold. That's because such work generally counts as a medical expense, and may be added to more traditional costs like doctor bills and prescriptions. One issue to watch out for, noted Jackie Perlman from the H&R Block Tax Institute, is that some improvements may add value to your home. A doctor may advise a disabled person to use a hot tub or swimming pool, for instance. The amount that could be claimed in such a case would be limited to the difference between the cost of the item and the value added to the home, she said. For instance, only $2,000 of a $7,000 hot tub installation that adds $5,000 to market value would qualify.
Disaster losses The first major disaster of 2011 was a Groundhog Day blizzard that brought Chicago to a standstill. Then hundreds of tornadoes swept through the Midwest and Southeast over the year, including the killer twister that leveled Joplin, Mo., on May 22. Wildfires in the drought-stricken Great Plains and Southwest; flooding along the Mississippi River and its tributaries; and Hurricane Irene, which left a path of destruction from North Carolina to Vermont, also contributed to the worst year on record. There were 99 separate federal disaster declarations in 2011. The declarations made federal funding available to individuals and businesses. It also enabled them to claim disaster-related losses on their taxes. Typically the IRS requires that the first $500 in losses be deducted from any claims. Perlman said homeowners may claim the losses on either the return filed during the year of the disaster
-- their 2010 return -- or the following year. So it's worth revisiting last year's return to see if filing an amendment or claiming the disaster losses for 2011 would produce a bigger refund. Likewise, taxpayers who live in Alabama, Alaska, Massachusetts, Oregon, Utah or Washington
-where federal disasters have already been declared in 2012 -- may be able to claim losses on their 2011 return when they file this year.
[Associated
Press;
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