Do you know if this credit gets reported on Form 5695? I'm trying to figure out the paperwork for a similar situation.

Yes, the Energy Efficient Home Improvement Credit (formerly the Nonbusiness Energy Property Credit) is reported on Form 5695, "Residential Energy Credits." You'll need to complete Part II of the form if you're claiming credits for the tax years before 2023, which covers qualified energy efficiency improvements including roofing materials. For tax year 2023 and beyond, the form has been updated to reflect the expanded credit under the Inflation Reduction Act, but the basic reporting mechanism is still Form 5695. The documentation requirements remain the same regardless of which tax year you're amending.

I claimed the energy credit for my solar reflective roof last year on an amended return and had zero issues. Just made sure I had the manufacturer's certification that it met Energy Star requirements and kept copies of all receipts. The whole process was surprisingly smooth.

Thanks for the recommendation! I'll check out Checkpoint. Does it have any kind of trial period? Also, do you find it's worth having a separate research tool when we already have ProSystem for preparation? Trying to justify the expense to the partners.

Yes, Thomson Reuters usually offers a 2-week trial if you reach out to their sales team. I found that to be enough time to see if it works for your research style. As for justifying the expense, I track time spent on research for each client and found I was saving about 3-4 hours per week using a dedicated research tool versus trying to cobble together information from free sources and tax prep software. When I showed the partners that math (my billable rate × hours saved per year), the decision was easy. Plus, having proper research documentation significantly reduces your professional liability risk.

I felt that way my first 3-4 years in practice. What helped me was taking specific continuing education courses on research methods and primary source analysis rather than just technical tax updates. Also, don't be afraid to tell clients "I need to research that" instead of guessing. They actually respect you more for being thorough.

Does contributing to HSA after the end of the year still reduce your MAGI for things like Roth IRA income limits or premium tax credits? I'm close to some of those phaseout thresholds.

Yes, HSA contributions made up until the tax filing deadline will still reduce your MAGI for most purposes, including Roth IRA income limits. This is one reason HSAs are so powerful for tax planning. However, for premium tax credits (ACA subsidies), it gets a bit more complicated. HSA contributions do reduce your MAGI for determining eligibility, but the timing can matter for marketplace reporting. If you're close to subsidy thresholds, you might want to make the contributions during the calendar year to ensure they're properly accounted for in the marketplace's initial calculations.

You're absolutely right about the math. People get so fixated on "dropping a tax bracket" when the savings are actually pretty minimal because of how marginal tax brackets work. I'd add that HSAs have another huge benefit - if you invest the money (most HSA providers allow this) and don't touch it for medical expenses now, it can grow tax-free for decades. Some financial planners actually recommend paying current medical expenses out-of-pocket if you can afford to, and letting your HSA grow for retirement. It's basically a stealth retirement account!

Does this mean you still have to file tax returns in your home country too? That sounds like a paperwork nightmare!

It depends on your home country's rules. Many countries have their own requirements for non-resident citizens. In my case (from the UK), I still had to file there for the income I earned while physically present, then file in the US for my worldwide income for the entire year. The US-UK tax treaty helped prevent double taxation, but I still had to file both places. The foreign tax credit on my US return essentially gave me "credit" for taxes already paid to the UK. Not all countries have tax treaties with the US though, so your situation might be different. Definitely worth researching your specific home country's rules!

That's a really practical tip about writing in red ink - thank you! How exactly would we terminate this election in the future if needed? Is there a specific form or another statement we'd need to file?

You'd terminate the election by filing another statement with your tax return saying you're revoking the Section 6013(g) election. There's no specific form - just a signed statement from both spouses. The election also automatically terminates if: 1) either spouse dies, 2) you get legally separated or divorced, 3) either the IRS or you terminate it because of inadequate records, or 4) you become a US citizen or resident alien through other means (like getting a green card). If you're planning to stay in the US long-term, you probably won't need to worry about terminating it.

If I already filed for 2021 last year but didn't claim the recovery rebate, is it too late to amend now? Is there a deadline?

You generally have up to three years from the original filing deadline to file an amended return, so you should still have plenty of time to amend your 2021 return. For 2021 returns (originally due April 2022), you would have until April 2025 to submit an amendment. Just make sure when you file the 1040-X that you're only claiming the recovery rebate credit if you were actually eligible and didn't receive the stimulus payment. You'll need to complete the Recovery Rebate Credit worksheet to determine your eligibility and amount.

Unfortunately, if you were claimed as a dependent on someone else's 2021 tax return, you weren't eligible for the third stimulus payment on your own. The payment would have gone to whoever claimed you (like your parents), but it was only for dependents under 17 for most of the stimulus payments.