Residential Clean Energy Credit carryforward and form 5695 for 2024 and 2025.

Forum|Forum|6 months ago
February 17, 2026
7 replies
143 views

I submitted form 5695 via TurboTax in March 2024. I just discovered (in Feb 2025) that boxes 17a thru 17c were checked incorrectly, saying that the property was not in the USA, which it is. Today, Feb 17, 2025 I have completed my tax return. I have a tax due amount of around $700. I also have a RCEC carryforward from 2024 of $26,000 or so. TurboTax says it cannot apply my carryforward credit to my tax owed for 2025. Why? Is there a link to the incorrect lines 17a thru17c on form 5695 from last year? I tried to resubmit my 2024 return with a corrected 5695, but I cannot correct it. I had entered information correctly on TurboTax but TurboTax had checked the wrong boxes on form 5695. My immediate problem: how do I get to apply my RCEC carryforward to my tax bill for 2025? My second problem, how to correct my 2024 form 5695? Thank you.

ThomasM125

Level 15

You likely can't apply the carryover credit from 2024 since the Form 5695 for that year was not correct.

When you go through the Home Energy Credits section under Your Home in the Deductions and Credits section of TurboTax, you will see an option to enter your energy credit carryover from the previous year. It is on the screen that says Home Energy Credit Carryforward. When you enter the carryover credit, that should allow you to get credit for the carryover from 2024 on your 2025 tax return.

You need to amend your 2024 return to record the correct energy credit and carryforward. You will see an option for that on your home screen when you log into TurboTax.

To populate lines 17(a) to 17(c) on Form 5695, you need to check the appropriate boxes in the Energy Efficiency Home Improvement Credit Smart Worksheet - Part II Section A you will see above the lines 17(a) to 17(c) on form 5695. Also, below those lines you must complete the Qualified Energy Efficiency Improvements Smart Worksheet. Lines 17(a) to 17(c) will populate based on those entries.

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NMPaulAuthor

Level 2

Thank you. Regarding getting the credit for the carryover form 2024 on my 2025 tax return. I had already done as you suggest, that is enter the carryforward amount from the form 5695. Although telling me that my running tax payable total is around $600, it gives me the following message:

Your home energy credit summary

Based on what you've entered so far, we can't get you the home energy credit for 2025. However, $25,687 of your credit will be carried forward to 2026.

I want to use the credit for 2025. So I am stuck at that point. Can you explain why?