energy tax credit

Forum|Forum|7 months ago
January 31, 2026
3 replies
59 views

My energy tax credit is for $2000. My tax liability shows as $434 but should have been $0 if energy tax credit was applied correctly. What is the issue?

Best answer by ThomasM125

It is possible that your energy credit is not showing as $2,000 on your tax return. Also, your tax may not be $434. I suggest you look on your Form 1040, lines 16 to 24. You will see your tax on line 16 and your energy credit on line 20. Your total tax will be on line 24. Also look on Schedule 3, line 5 to see if the energy credit is actually $2,000. If there is a tax amount due on line 24 even though your energy credit is $2,000, you will see how the tax is arrived at by the entries on lines 16 to 24.

To view your form 1040 and schedule 1 to 3:

Choose Tax Tools from your left menu bar in TurboTax Online while working in your program
Choose Tools
Choose View Tax Summary
See the Preview my 1040 option in the left menu bar and click on it
Choose the Back option in the left menu bar when you are done

MindyB

Level 13

It depends, there are a few reasons this could be. The most common reason for tax liability when the credit should have reduced your tax to zero is if your tax liability is due to self-employment tax. The credit will only reduce regular income tax to zero.

See this article for more information about energy credits: Energy Efficient Home Improvement Credit (EEHIC)

jaesunfishAuthor

Level 2

I do not have self employment income. I only have regular income and retirement income.

ThomasM125Answer

Level 15

To view your form 1040 and schedule 1 to 3:

Choose Tax Tools from your left menu bar in TurboTax Online while working in your program
Choose Tools
Choose View Tax Summary
See the Preview my 1040 option in the left menu bar and click on it
Choose the Back option in the left menu bar when you are done