I had insulation installed at a cost of 3250.00. When I entered this into the form 5695 Turbo tax came back with only 325.00 as the deduction.Why is it only 325.00?

Forum|Forum|2 years ago
January 7, 2024
2 replies
3 views

I was told the deduction could be up to 1200.00.

TurboTax Deluxe Online

xmasbaby0

Level 15

The forms for energy credits are not ready yet.

Many federal and state forms are not yet available. Check here for form availability. The dates are subject to change.

Tax form availability tool,

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

rjs

Level 15

Form 5695 is tentatively expected to be available January 17. That date could change.

The credit is not the full cost of the insulation. First of all, you can only claim the credit for the cost of the insulation material itself, not for the cost of installing it. If you paid a total of $3,250 for the material and installation, you have to get a breakdown of the bill showing the separate amounts for material and installation.

Secondly, the credit is not the full cost of the material. It's 30% of the cost of the material, up to a maximum credit of $1,200.

For 2022 the credit was 10% of the cost. Because the form has not yet been updated for 2023 TurboTax is still calculating the credit as 10% of the cost. Try again after Form 5695 has been finalized.