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If you are not getting the $2000 credit for your AC heat pump tax credit first be aware that this is a nonrefundable tax credit. This means it can only reduce your tax liability to zero. It does not result in a refund of taxes. If your tax liability is already $0, or if the credit exceeds what you owe, you will not receive the full $2,000 credit.   You can look at your Form 1040, line 18 to see if you have any tax liability to make sure this isn't why you are getting the credit.   Next, make sure your entries in TurboTax are correct. You can review your entries in TurboTax using the steps below:   Click on Search in the top right of your TurboTax screen Type residential energy credit in the search box Click on the link Jump to residential energy credit This will take you to the input screen in TurboTax to enter your information regarding your new water heater Your screen will say Energy Efficient home improvements Answer Yes to I made these energy-efficient improvements or have a carryforward and click on Continue Answer Yes to my home is in the U.S. and Continue through your TurboTax screens  On the screen that says Did you have any of these residential-related clean energy costs in 2025? Answer No and Continue On the screen that says Did you have any of these qualified energy-efficient improvements in 2025? Select No and Continue On the screen that says Did you have any of these residential energy property costs in 2025? Click on Yes and Continue On the screen that says Tell us more about the residential energy property, make sure to answer that the home is located in the United States, Did you pay for a home energy audit Yes or No, Was the qualifying energy property originally placed in service by you? Yes On the screen that says Enter your qualified energy property costs, you will enter your QMID and the cost of your AC  Heat Pump On the screen Did you install improvements or replacements for enabling property? Say Yes if you installed panelboards, branch circuits etc required to support the improvements, and if not, say No and Continue The next screen says Improvements or replacements installed for enabling property, select the one that applies and enter your QMID and the cost you paid for all materials, and Continue Continue through your TurboTax screens to complete your entries regarding your energy credit.   Note: You need a Qualified Manufacturer Identification (QMID) code to claim the federal tax credit for your AC Heat Pump system.   If you do not have a QMID (Qualified Manufacturer ID) for your product, you can contact the manufacturer directly to request their 4-digit code. The QMID is assigned to the manufacturer, not the installer.   You can also try checking with your installer for it or it may be on your  "Manufacturer Certification Statement," which should list the necessary information for Form 5695, including your QMID. You can try googling it.   Click here for Where do I enter qualified energy-saving improvements? Click here Energy-Efficient Energy Efficient Home Improvement Credit   Please return to Community if you have any additional information or questions and we would be happy to help.   {Edited 03/22/2026|06:19 PST} @NCperson 

@brommabo he does not report the form 1095-A.  only you do.  He checks the box that be CAN  BE claimed by someone else.     if he reports the 1095-A, the software will require him to pay back the entire PTC; you don't want that outcome. 

@MarilynG1 Actually I think I figured out how to unlink the 1095-A from my business, but then my taxes go up.  Are you saying that I can go in (Schedule C?) somehow and deduct some part of the payments?  I am not sure where to go to do that.  Please let me know.   Thank you!   @bkrett01  @jasling 

The options you mentioned is not what I see in TT online. I see the options that I mentioned in my post. Are you saying, i should not check any of them? I do so Form 6781 but the losses are not added to my Capital Loss Carryover. Why is it so?

Yes, you can take the self-employed health insurance deduction for Medicare and Supplemental plans. According to Healthinsurance.org:   Prior to 2010, no Medicare premiums were deductible under the self-employment health insurance deduction. From 2010 to 2012, only Part B premiums were deductible. But starting in 2012, premiums for Medicare A, B, C, and D, as well as Medigap/Medicare Supplement, became deductible under the self-employment health insurance deduction.   The IRS rules for the self-employed health insurance deduction clarify that:   Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer can’t be used to figure the deduction.  

Employers are not required to break out overtime on 2025 W-2s, but the deduction still applies.  If your overtime is not listed on your W-2, you may have to get your overtime amount  from your last paystub of the year or from a statement provided by your employer.  How do you calculate the portion of your overtime that isn't taxable?  Use the TurboTax   No Tax on Overtime Calculator