The behind the scenes "Residential Energy Property Smart Worksheet"worksheets supporting form 5695 is limiting the expenditure for a qualifying heat pump. If you click on the quick zoom you will see the limitation identified as "Total maximum eligible costs for column (b) of lines 9-11 of $1,667. Per the help for 5695 Joint occupant residential energy costs worksheet, the limitation should be $6,667. The $1,667 worksheet limitation only provides for allowed expenses of $834 (50/50 joint ownership). this shows on form 5695 line 29a. 30% of lines 29d ($834) gives me a credit of $250 ($500 combined for joint ownership). Form 5695 line 29e indicates the maximum credit is $2000, which cannot be achieved with the worksheet limitation of $1,667.
The "Residential Energy Property Smart worksheet" has to pull the correct limitation number of $6,667 in order for the maximum credit to be achieved. Please fix ASAP as I have been waiting over 2 weeks for this to be fixed so I can file my taxes and get my refund.
The tax credit should be $1,000 ($2000 for combined ownership)
