Tax Year Prior to 2020: Question on home energy credit

ab-lysander — Tue, 02 May 2023 21:14:25 GMT

My husband and I had all new energy efficient windows installed in our home last year. We financed the project, so when filing for the home energy credit do we enter the total amount of the project (excluding labor) or the amount we have paid so far?

You would enter the amount you paid for the project. Tak...

KarenL2 — Sat, 01 Jun 2019 06:44:49 GMT

You would enter the amount you paid for the project. Taking a loan out to pay for it doesn't affect the credit.

These are entered in the Deductions & Credits section:

With your return open, search for energy improvements in the program search box. (Don't search for "energy credit," as this will take you to the wrong place in the program.)
Click Jump to energy improvements in the search results.
At the bottom of the Energy-Saving Home Improvements screen, answer Yes and click Continue.
Follow the on-screen instructions.

If that doesn't work: Go directly to the Federal Taxes tab, then Deductions & Credits, then Your Home, then scroll to Home Energy Credits.

Note: The Residential Energy Efficient Property Credit is what is called a "non-refundable" credit which means it will only reduce your tax liability to zero. Any remainder can be carried forward to the next year.

topic Tax Year Prior to 2020: Question on home energy credit in Deductions & credits

Tax Year Prior to 2020: Question on home energy credit

You would enter the amount you paid for the project. Tak...