The Home Energy Credit Section of TurboTax is not currently up to date. A release updating this section is expected on January 31st. Please come back after that date to enter your Insulation expenses to claim the Home improvement Energy Credit.
This means until then, the calculation is not accurate so when the form is updated you may be getting more back. If you do not have a tax liability, you can choose to delete form 5695 by going to Tools>>Tax Tools>>Delete a Form>>Delete next to form 5695 and any worksheets referring to the credit. However, if this was a credit that falls under the residential energy credit, even if it would not produce a refund for you this year, it can be carried forward to help in future years, but you would need to claim it this year.
The Home Improvement Energy Efficient Credit is a non-refundable credit
- Worth up to 30% of costs with a maximum credit $2,000 for
- Air source heat pumps
- Heat Pump Water Heaters
- Biomass Stoves or Boilers
- Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
- Doors, Windows and Skylights
- Insulation
- Natural Gas, Oil Propane Water Heaters
- Furnaces
- Boilers
- Central Air Conditioners
- Electrical Panel Upgrades
- Home Energy Audit (up to $150)
- You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
- This credit is a use it or lose it credit. If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
The Residential Energy Credit is also a non-refundable credit, however this one can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034
This credit is worth up to 30% of the cost of the equipment, with no maximum limit. The items that fall into this category are as follows:
- Geothermal Heat Pumps
- Small Wind Turbines
- Solar Energy Systems
- Fuel Cells
- Battery Storage Technology
To enter these credits into TurboTax take the following steps:
- Federal
- Deductions and Credits
- I'll Choose what I work on
- Home Energy Credits which is under the "Your Home" category
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