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Level 1
posted Jan 1, 2024 1:50:12 PM

Air Source Heat Pumps Tax Credit and Furnace Calculations WRONG in TurboTax - how to remedy

The tax allowable tax credit for Air Source heat pumps is up to $2000, depending on type and is detailed here: https://www.energystar.gov/about/federal_tax_credits/air_source_heat_pumps

 

The allowable credit for furnace is up to $600, depending on type, and is detailed here: https://www.energystar.gov/about/federal_tax_credits/natural_gas_propane_oil_furnace

 

Turbotax 2023 allows entry of these under Duductions and Credits > Home Energy Credits.

 

Turbotax 2023 does not ask for information on efficiency, which is necessary for the calculations. Nor does it provide the correct calculation of allowable amount. It caps the amounts at an INCORRECT value of $300 for the heat pump and $150 for the furnace.

 

How to remedy this issue?

0 5 670
5 Replies
Level 15
Jan 1, 2024 1:53:04 PM

The IRS Form 5695 Residential Energy Credits has not been finalized in TurboTax.

The Form 5695 for tax year 2023 is scheduled to be finalized on 01/10/2024.

Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product=Turbotax_online&bu=cg

Level 1
Jan 1, 2024 1:58:30 PM

Thank you for pointing this out. Also, thank you for pointing out the link to the finalization dates. In the many years of using TT I was unaware of that maturity schedule. It is significantly relevant as I use TT to plan end of year tax approximation. It is definitely something that should be shared at TT startup with the users.

Level 15
Jan 1, 2024 2:35:40 PM

Please note that the dates in the Tax form availability tool are estimates, and are subject to change.

 

New Member
Jan 28, 2024 10:30:47 AM

Here it is 4 weeks later from your post and I am having the same issue.  Credit comes up for $300  for heat pump.  When will this be fixed??

Level 15
Jan 28, 2024 10:32:42 AM


@bborm wrote:

Here it is 4 weeks later from your post and I am having the same issue.  Credit comes up for $300  for heat pump.  When will this be fixed??


The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...