Can my purchase of a new High Energy HVAC unit be deducted

[Elizabeth_B · Accepted solution]

You may qualify for the Home Energy Credit for your new HVAC unit as long as it meets certain energy efficiency requirements, which can be found by clicking here: IRS Instructions for Form 5695. 

From the Learn More hyperlink in TurboTax “You can get a credit of up to 10% of the cost of your energy-efficient building property, with a dollar limit of $300.

Examples of energy-efficient building property include: electric heat pump water heater, central air conditioner, natural gas, propane, or oil water heater, or a stove that burns biomass fuel to heat your home or heat water. You may also include the amounts paid for the assembly, preparation and installation of these items.”

To enter this into TurboTax follow these steps:

1.       Sign into TurboTax Online.

2.       Continue your return by click Taxes > Tax Timeline > Continue your return.

3.       Go to the Federal Taxes tab (Personal tab in TurboTax Home and Business).

4.       Click on Deductions and Credits > Jump to full list.

5.       Scroll down to Your Home section and click Show More.

6.       Find Home Energy Credits > click Start/Revisit.

7.       This will bring you to the Home-Savings Home Improvements page. Here you will see a list of improvements you may claim.

8.       Continue through the interview. When you come to the page Tell Us How Much You Paid for Energy-Saving Improvements, your HVAC unit costs go under Energy-Efficient Building Property (if qualified).