Energy Credit - Qualifying furnace but no enabling electrical work?

[LakesideGuy]

My federal and state returns were rejected because I entered my qualifying furnace expense, but I said "no" to "Did you install improvements or replacements for enabling property?" There was no special electrical upgrade other than running a line for the furnace and a line for the AC. Does this mean that I do not qualify for any deduction or credit related to the qualifying furnace because there was no special electrical work?

[AmyC]

No, I think it was entered in the wrong section. There are two spots. One for just the furnace and a different spot with the electrical upgrade. Follow these steps:

1. Open to the federal deductions and credits
2. Continue through until you reach - any residential energy property costs?, select yes
3. Enter the furnace QMID and cost.
4. When you continue, the program will ask about the improvements or enabling - the correct answer in no but I think you said yes the first time and your original furnace is in there. 
   1. So, go in and delete your original entries. 
   2. Now go backwards- select back
   3. change yes to no

You should be set to file again.

[LakesideGuy]

Update: I'm getting the same error I received the first time.

Federal return rejectionThere is incorrect or incomplete information on Form 5695, Energy Efficient Home Improvement section, Enabling Property part on the Federal returnReject Code /Return/ReturnData/IRS5695/EgyEffcntHmImprvCrGrp/EnablingPropertyGrp/PanelboardCktFeederCostAmt

Description of error:

There is incorrect or incomplete information on Form 5695, Energy Efficient Home Improvement section, Enabling Property part on the Federal return

What needs to be done:

We have an update regarding your tax return. Depending on which version of TurboTax you are using, please follow the steps below to complete your filing: TurboTax: 1. Log in to TurboTax 2. Go to your Federal Return 3. Navigate to the Deductions and section 4. Follow through as before to the Energy efficient home improvements topic 5. Answer as before until the 'Did you install improvements or replacements for enabling property?' Answer Yes 6. Select all that apply for 'Improvements or replacements installed for enabling property' - a selection must be made if an amount and/or QMID is entered. At least one checkbox must be checked. Alternately, remove the entries for amount and QMID if they don't apply. 7. Continue as before 8. Complete review and retransmit your return. ProSeries: Verify the entries for Form 5695, Energy Efficient Home Improvement Credit, If enabled property improvements are claimed, the type of enabled property is a required field. Please review the reason for the reject. If the reject continues, you may want to file this return via U.S. Mail: print and mail it to the appropriate taxing authority.

It wants me to answer "yes" to installing improvements or replacements for enabling property, which is not correct.

Hi,

 So your suggestion is actually what I did the first time (at least I thought so). I completed the section once again, and it looks a bit different this time, so we shall see what happens. Thank you!

[artsyphartsy]

How did you come out? I’m having the exact same issue. 

[LakesideGuy]

I'm going to try TurboTax customer service tomorrow. I wonder if it's a software glitch?

[artsyphartsy]

So in TurboTax, I went to tools, on the left side of my iPad, selected delete forms, found the 5695, deleted it, signed out, deleted the cache. Signed back in, navigated to the Home energy credits and started it from scratch. I made sure NOT to click yes for the enabling property. It seemed to work, however, I’m still waiting on something so can’t resubmit yet. I did not get an error though. 

[Jerlynnkj]

I did this fix, but then it showed my tax return reduced by about $500?? I don’t want to submit it yet because that doesn’t seem right. I don’t understand why this is coming up as incorrect!!

[artsyphartsy]

I don’t know what your process was, and I am just someone who had to troubleshoot for 2 days. lol. But I’m wondering if you had put an amount into the ENABLING section (panel boards, feeders) the first time? From what I understand, this is a separate credit, above and beyond the $600 credit for the unit itself. If so, this would bump your refund up. And if so, this section needs the QMID code specifically for that part, then it should work. However, if you didn’t mean to put an amount in the ENABLING section and cleared it, your refund would then go back down? But I don’t know your circumstance. 

[Jerlynnkj]

Thanks for the reply! What’s strange is that I have said NO on the enabling section but it keeps getting rejected because it says I need to put a number there. But I don’t have anything to enter! I’m hoping it gets resolved soon.

[artsyphartsy]

Mine was doing that too, but I had inadvertently checked yes at one point. Even after backing up and checking no, the issue kept happening, it wanted a number in there. That’s when I went to the tools and deleted the form, etc.  and started that section over. Best of luck. And I hope you figure out that $500 that went missing. Yay My form was finally accepted!

[artsyphartsy]

A tax expert answered my question. I had already successfully submitted, but he said to break off the labor and put that for the enabling, since they are hooking up the electrical. I’m assuming the same QMID? Could try it. Not sure if the same code would work, IMO.

[MarilynG1]

Yes, you can generally use the same Qualified Manufacturer Identification Number (QMID) for both the main equipment (e.g., a heat pump) and the associated enabling property installation  (e.g., an electrical panel upgrade) in TurboTax if both were provided by the same manufacturer. 

Here's more info on Claiming the Energy Credit.

@artsyphartsy