topic Why is TurboTax showing the Energy Efficient Home Improvement Credit is only 10%? According to the IRS, this tax credit should be 30%. Please update. in Deductions & credits

Why is TurboTax showing the Energy Efficient Home Improvement Credit is only 10%? According to the IRS, this tax credit should be 30%. Please update.

zenitram — Sat, 14 Jan 2023 07:11:06 GMT

https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-clean-energy-property-credits-energy-efficient-home-improvement-credit-qualifying-expenditures-and-credit-amount

Re: Why is TurboTax showing the Energy Efficient Home Improvement Credit is only 10%? According to the IRS, this tax credit should be 30%. Please update.

DoninGA — Sat, 14 Jan 2023 14:42:36 GMT

The credit is entered using IRS Form 5695, Residential Energy Credits.

IRS Form 5695 Instructions (2022) - https://www.irs.gov/pub/irs-pdf/i5695.pdf

The Energy Efficient Home Improvement Credit -

You may be able to take a credit equal to the sum of:

1. 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2022, and
2. Any residential energy property costs paid or incurred in 2022.
However, this credit is limited as follows.
• A total combined credit limit of $500 for all tax years after 2005.
• A combined credit limit of $200 for windows for all tax years after 2005.
• A credit limit for residential energy property costs for 2022 of $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property.

Re: Why is TurboTax showing the Energy Efficient Home Improvement Credit is only 10%? According to the IRS, this tax credit should be 30%. Please update.

SteamTrain — Sat, 14 Jan 2023 14:37:33 GMT

..or...describe what your energy efficient improvement was,

The 30% Solar energy, Biomass, and Geothermal credits go in on a follow-up page.

Re: Why is TurboTax showing the Energy Efficient Home Improvement Credit is only 10%? According to the IRS, this tax credit should be 30%. Please update.

AmeliesUncle — Sat, 14 Jan 2023 17:40:30 GMT

That link is showing the rules for the credit in 2023, not 2022 (if you click the "fact sheet", you'll see more information).

The credit for 2022 (the tax return you are working on right now) is only 10% of many of those items.