We had a new HVAC/Heat Pump system installed in October 2023. We were given AHRI # 209055721 as the appropriate input for the tax credit and assured that choosing that system would mean we got a credit of around $2,000. This is a reputable firm and we've raised this with them also. (But their expertise may not include T-Tax.) We walked through the T-Tax (Premier) process, filling in the requested information (which did not include that AHSI #). At the end we were told that our Home Energy Credit is $0, with no explanation. My only thought concerning a reason = our address used by T-Tax involves a PO Box. During the process we were asked to verify that address as the location where the new unit was installed. Thanks for any help anyone here can provide.
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TurboTax will not stop you from getting the credit based on the address. However, it is possible, the unit qualifies for the credit, but you do not qualify for the credit. The Home Improvement Energy Efficient Credit is a non-refundable credit.
A nonrefundable credit provides no benefit or less benefit to you when you have no tax liability or less liability than your credit. This would be the reason you have a carry over from last year. You did not have enough tax liability to fully use the credit. 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.
This credit is a 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.
Thank you. I went back and corrected the income part and then the credit appeared. Suppose I should have known that.
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