Question

Home residential energy credit issues

Forum|Forum|2 years ago
January 14, 2024
1 reply
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We made several home upgrades that qualify for the Inflation Reduction Act tax credits, but my TurboTax package is having issues with them. It won't take me to Form 5695, Part II Energy Efficient Home Improvement Credit using the Q&A format. So I went to the form itself. Get the message we qualify for $1,200 credit, but then it's not applied to our tax due and no Form 1040 Schedule 3 showing the credit is to be found. What's up here?!? This is the same product I bought last year, but seems to be offering less.

TurboTax Home & Biz Windows

rjs

Form 5695 has not yet been updated for 2023. The form and the interview are tentatively expected to be available January 25. (That date could change.) Try again after January 25.

A

anitaf

Is Form 5695 ever going to be corrected in TurboTax? The IRS has had the updated form on their website for weeks. Yet the Turbotax form still has an erroneous "Smart Worksheet" for Line 18 that imposes a lifetime limit, which is NOT the law for this year. And Line 18 on the form is correctly the line for Insulation or air sealing material or system. So TurboTax has the updated form, but has not updated its worksheets and is erroneously denying credits.

R

RobertB4444

So where is that spot to correct this? I qualified for the Energy Efficiency Improvement credit, but it is still not included in my summary of credits or applied to the tax due. First time claimant, and don't have any carryovers.

My TT software is current. I double checked the form 5695 and it is complete and shows the credit!

The energy efficient home improvement credit can only be used to reduce income tax due. If you have any income tax due then the credit will be applied to reduce it. If you don't then the credit will be rolled into future years.

Keep in mind that the credit can't be used to reduce self-employment tax. If you have any self-employment tax on your return then that will be paid as a separate bill from the energy efficient credit.

@MJ991

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