Your energy-efficient furnace and central air-conditioning system may qualify for the Nonbusiness Energy Property Credit portion of the Residential Energy Credits. You'll enter the cost of the furnace and AC under Tell Us How Much You Paid for Energy-Saving Improvements. The AC will be entered as an Energy-Efficient Building Property. (Click the screenshots below for reference.)
To enter your energy-efficient property in TurboTax:
- Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
- Click Tax Tools (lower left side of your screen).
- Select Tools.
- In the pop-up window, select Topic Search.
- In the I'm looking for: box, type 5695.
- In the results box, highlight 5695, residential energy credit, then click GO.
- Follow the onscreen instructions to complete this section. Be sure to click on a Learn more link if you have any questions. After you enter the cost of your furnace and AC and answer the corresponding questions, TurboTax will determine if you qualify for a Nonbusiness Energy Property Credit.
Note: If using the TurboTax CD/Download software, you'll use the Find function (instead of "My Account") to search for the topic.
The Nonbusiness Energy Property Credit has a lifetime total combined limit of $500, so if you have claimed the credit in a prior year your current deduction may be reduced. See IRS Instructions for Form 5695, Residential Energy Credits for more information.
The FAQ below has links to sites that will help you determine if your energy-efficient building property qualifies for an energy credit. https://ttlc.intuit.com/replies/3300639
[Edited 03.17.2018 I 07:27PM PDT]
