If this is a qualifying non solar water heater you may qualify for an energy credit.
To enter the qualifying water heater:
- Continue working on your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
- Click Tax Tools (lower left side of your screen).
- Select Tools.
- In the pop-up window, select Topic Search.
- In the I'm looking for: box, type 5695.
- In the results bar, highlight 5695, residential energy credit, then click GO.
- You'll land on the Energy Saving Home Improvements screen. Check Yes, I made energy-efficient improvements or have a carryforward, then click Continue.
- Continue following the onscreen instructions in this section. You'll be able to enter the cost of the water heater when you get to the screen that states Tell Us How Much You Paid for Energy-Saving Improvements. Enter it as an Energy-Efficient Building Property. (Click the first screenshot below to enlarge it for reference.)
- Continue following the onscreen instructions to the end of this section. TurboTax will determine if you qualify for an energy credit.
Note: If using the TurboTax CD/Download software, you'll use the Find function and the "Jump to" link (instead of "Tax Tools") to search for the topic.
Note: The Nonbusiness Energy Property Credit has a combined lifetime limit of $500 so if you claimed an energy credit in a prior year your credit for this tax year may be limited.
Can I claim energy-saving home improvements? https://ttlc.intuit.com/replies/3300639
