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Level 1
January 29, 2025
Question

Even though I use std. deduction I thought I could still claim a small tax credit for some replacement energy saving windows using for 5695

  • January 29, 2025
  • 1 reply
  • 19 views
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1 reply

Level 15
January 29, 2025

Yes, you can claim the Home Improvement Energy Credit when taking the standard deduction.  Credits are different than deductions and whether you itemize or take the standard deduction, generally does not affect your ability to take a credit.

 

This means until then, the calculation may not accurate so when the form is updated you may be getting the credit.

 If you do not have a tax liability, you are not eligible for the credit as it is a non-refundable credit. See below for additional information on the Home Improvement Energy Efficient Credit. 

 

The Home Improvement Energy Efficient 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:
  • You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
  • This credit is a is a nonrefundable credit. This means in order to claim the credit you must have a tax liability to offset it.  If you do not have a tax liability equal to the credit the credit will be reduced to match your liability or down to $0. 
  •  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.
  • Doors, windows and insulation must be installed on your primary home.
  • The home must be in the US
     

(Edited 1/29/2025 @ 12:38PM PST)  @teejaybee

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Level 4
January 29, 2025

@Vanessa A 5695 is still not up to date for 2024? Is this why my Federal submission for 2024 hasn't been accepted by the IRS yet? I filed on 01/26/25.

 

This delay is EXACTLY what happened when filing 5695 via TT for 2023. Same timeline of Feb 7th!  I ended up filing with H&R Block without any delays in acceptance.

Level 15
January 29, 2025

It actually is updated.  A few days ago, it still was saying February 7th would be the update day.  You can click the link here to see forms availability. 

So where are you seeing that you are not eligible for the home energy credit?

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