2023 home energy credit for heat pump not calculated properly. only shows $300 credit when it should be 30% of cost up to $2,000

[xmasbaby0]

Click Review to see if you are missing some forms needed in order to e-file.

Many federal and state forms are not yet available.  Check here for form availability. The dates are subject to change.

Tax form availability tool,

No hurry to e-file since the IRS will not begin to accept/reject 2023 e-files until January 29.   And….a state return cannot be accepted until after the IRS accepts your federal return.

[VolvoGirl]

Home Energy Credit Form 5695 is not ready yet.  It still has the old amounts.  It is currently scheduled to be available on 01/31/2024.  But that date is subject to change.

[gotu123]

This helps me out as well.  I should get 1200 for attic insulation and 450 for a heat pump hybrid hot water heater and turbotax just told me I only qualified for 500!

This is my first year using turbotax (I used taxact for the last 10+ years...) so do I have to redo this section when the new forms come out on jan 31st?

[BillM223]

Often, when there is an update to TurboTax like this, when you reopen TurboTax, the program recalculates the tax and credits without you doing anything else. On occasion, you might have to step through the input screens, not changing anything, for the updated results. Only on rare occasions when the input screens actually change do you need to re-enter anything.

Please note that dates listed for the release of forms are subject to change; indeed, the date for the 5695 has already been reset to 2/7/24 - see here.

[kirine]

this updated form is still not available.  i just got off a lengthy phone call with turbo tax and they did not indicate when this updated form will be available.

[Cynthiad66]

This is a known issue and the Form should be released by February 7, 2024.  Please try to submit your return after that date.

This link provides updates for Forms Availability

@kirine 

[Edited 2/6/2024 | 7:56am PST]

[Salemgirl]

It's February 22,2024 and this form is still unavailable with no idea of when it will be released.  You will think that after all the money we pay to use a "free" service we could get at least the courtesy to know when it will be available and for turbo tax to actually stick to the date instead of constantly changing the date. 

[davidhopkinsberry]

It's February 28 and I'm still getting only a $500 credit for installation of a $19k electric heat pump.  When will this be fixed so that Turbotax shows the full $2000 credit?

[gotu123]

Honestly, I gave up on TurboTax and went with another company and I already have my tax return...

[Vanessa A]

Did you update TurboTax?  How much was your heat pump?  Is your credit being limited by your tax liability?

If you are using TurboTax Desktop and did not update it, please select Online>>Check For Updates and then update your program. 

The form for the Electric Heat Pump should be working as most people are getting the proper credit and when I try it, it does give me a $2,000 credit for the heat pump.  The credit is 30% of the cost with a $2,000 cap.

The most common reason people are not getting the full credit is a lack of tax liability. This is one of the nonrefundable credits.  These are credits that will reduce your tax liability to $0, but not below $0.  They are different from refundable credits which will result in extra money being sent to you that you did not pay in.

If you did not have enough tax liability to fully use the credit, you could be stopped at $500. Look at line 16 on your 1040, then also look at line 24. If the amount on line 16 is less than the full credit, then this is the maximum amount of the credit you use this year will be that number.  If you have other credits, that may also reduce the tax liability, this may also reduce the amount of the credit you receive.  

Then look at line 24.  If this line is $0, then you received one of more credits that brought your taxes down to $0.  If this is the case, and you had multiple nonrefundable credits, you may not get the full credit for one or more of the credits. 

@davidhopkinsberry 

On the menu bar on the left that shows. 

1. Select Tax Tools 
2. On the drop-down select Tools 
3. On the pop-up menu 
4. Select View Tax Summary 
5. On the left sidebar, select Preview my 1040 

[Salemgirl]

The form was not available,  checked with 2 employees via chat/ video call and I was told to wait until available. 

Finally posted last week.