Deductions & credits

The IRS now requires a Qualified Manufacturer Identification Number (QMID) for heat pumps (beginning in 2025).

If you leave the QMID field blank or enter an invalid QMID, the program may default the "qualified" questions to "No" (because the item doesn't qualify without that ID).  You must locate the 4-character alphanumeric code on your heat pump’s packaging or manufacturer’s certificate.

Simply deleting the form and going back to the same menu in the program may not take care of the issue (your old answers may still remain in the software's background cache).

Step 1... How to Delete forms in TurboTax:

1. Open or continue your return
2. In the left menu, select Tax Tools and then Tools.
3. In the pop-up window Tool Center, choose Delete a form.
4. Select Delete next to the form, schedule, and worksheet in the list and follow the instructions. 
5. Find Form 5695 and delete it (delete "Joint Occupancy" worksheet, too if there).
    

TurboTax FAQ: How do I view and delete forms in TurboTax Online?

Step 2...  Go back to the "Deductions & Credits" section for Home Energy Credits.

1. Answer "No" when asked if you made any energy-efficient improvements.
2. Log Out/Refresh: Close the browser (or the program) and log back in.
3. Now, go back to the Home Energy Credits section, answer "Yes" and proceed. 
4. When you get to the "Energy-Efficient Building Property" screen, enter your heat pump water heater costs and the QMID.
    

The Heat Pump credit is non-refundable.

Look at Form 1040, Line 22. If that number is already zero (or very low because of other credits taken), the program will show a "$0 credit" because there is no tax left to offset.