Where on TurboTax do we file Federal Heat Pump tax credit?

[PatriciaV]

Please see this article to sign up for updates on this investigation (even if it doesn't seem to apply to your situation): Why are Home Energy improvements for my second home not qualifying for the Home Energy Credits?

@daisyismad 

[brokenwhisker]

I am having the exact same problem.  Wondering if you have found any path forward here yet.

[daisyismad]

I got an email yesterday that said they are still working on the issue.

[EduQuinn]

Do you know if TurboTax will honor the discounted rate for filers in this situation? I wanted to file tonight, but I am holding off because I don't see the credit applied to my filing.

[CatinaT1]

Please call TurboTax Customer service.  Here is a link:  Turbo Tax Customer Service 

[daisyismad]

I got an email saying this issue was resolved, but I'm still having the same problem. I updated my software and deleted the form so I could restart it. The energy credit for an electric heat pump still caps at $500 when it should be $2000. 

[DawnC]

If you shared the costs of the heat pump for your home w/ a co-owner, you will need to wait for the Joint Occupant form to be updated to reflect the 2023 credit amount.   The total costs paid by all owners is needed to calculate your portion of the credit.    Sign up for Form 5695 notifications.    

If you did not share the costs of the heat pump with a co-owner, then you do not need the Joint Occupant form, so you can:

1. Uncheck the box at the top of Form 5695 and
2. Delete the Joint Occupant form.  

This will put the credit (based on 2023 limits) on your return, and you can file.   The Joint Occupant page has the issue, but you only need that form if you shared the costs of the heat pump with other co-owner(s).   The box at the top of Form 5695 is what triggers the Joint Occupant form.   If you delete while the checkmark is still there, it will regenerate during the Federal Review.   

You can delete the checkmark in Forms Mode, but if you are using TurboTax Online, you need to return to the interview (it's the first question) and answer NO if you did not share the costs with any other co-owner.  

From the Instructions for Form 5695:  If you owned your home jointly with someone other than your spouse, each owner must complete their own Form 5695.   

If you paid the full amount (no shared costs by co-owners), the multiplier is 1, so no allocation is necessary.  

The credit limit for heat pumps still needs to be updated on the Joint Occupant form, but if you don't need it, you can delete it and file your tax return.   If the box at the top of Form 5695 (Check this box if you occupied your home jointly and shared the cost of any qualifying property or Improvements (not applicable if the other person is your spouse, and you file jointly))  is checked, the Joint Occupant form is required, and you will need to wait until it is updated.   Sign up for notification here. 

[brokenwhisker]

@DawnC this is great ... thanks for suggesting this.  The only thing i think you still need to do for accuracy is to go back in forms mode and recheck the joint occupancy box once you have deleted the form.  Otherwise the form would be inaccurate if you have joint occupancy.  Do you agree with this ? Is there anywhere else on your return that indicates joint ownership that needs to be reviewed ?

[DawnC]

If you recheck the box on From 5695, the Joint Occupant form will regenerate and you will have the same problem.   That form needs updating, so you will need to wait if your return requires the Joint Occupant form.  Sign up for Form 5695 notifications.    

• If you shared the costs of the heat pump for your home w/ a co-owner, you will need to wait for the Joint Occupant form to be updated to reflect the credit amount.   
• If you did not share the cost of the heat pump with a co-owner, then you do not need the Joint Occupant form, so you can uncheck the box at the top of Form 5695 and delete the Joint Occupant form.  

The workaround above is only for a situation where you paid the full costs of the energy improvement, in which case, the Joint Occupant form is not needed.   @brokenwhisker 

Joint occupancy refers to individuals who both share ownership and occupancy of a house. This term does not refer to a married couple if the couple does not share ownership with another individual.   If you occupied your home jointly, each occupant is eligible for a credit based on what each occupant actually paid during the calendar year. These rules do not apply to married individuals filing a joint return.

[EduQuinn]

Thanks for that update. As someone married and filing jointly, it sounds like I'll still have to wait. It's not the end of the world, but it's also frustrating to wait to file and lose the discounts because of an issue on TurboTax's end. That said, the benefits outweigh the costs.

[DoninGA]

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@EduQuinn wrote:

Thanks for that update. As someone married and filing jointly, it sounds like I'll still have to wait. It's not the end of the world, but it's also frustrating to wait to file and lose the discounts because of an issue on TurboTax's end. That said, the benefits outweigh the costs.

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If you are filing your 2023 tax return as Married Filing Jointly you are not sharing the costs.  You will not even be asked the question concerning sharing cost.

You only need to enter the cost of the heat pump on the screen Enter your qualified energy property costs.

The credit of $2000 should be shown to you at the end of the Home Energy Costs section.  Unless your tax liability is at zero then the credit will not be applied.