Energy Credit

[sunflowers3]

Can I deduct both a new furnace and central air conditioning that I purchased December 2023?

I also have entered the information on Form 5695 but only the central air was a credit not the furnace.  I read about other customers that were having problems with Form 5695.

I was able to enter my address not like some other customers.

[DoninGA]

If you had the air conditioner and the furnace installed as a HVAC package for one amount then you can only enter the A/C or the Furnace as one amount but not both.  Unless you contact the company that installed the HVAC and they can break down the cost for the A/C unit and the Furnace unit.

[DawnC]

The furnace and the A/C must have been placed in service, or installed, in 2023, and you need the costs separated to take both credits.   A 30% credit, up to a maximum of $1,200, may be allowed for:

• Insulation material or air sealing material or systems,
• Exterior doors,
• Windows and skylights,
• Central air conditioners,
• Natural gas, propane or oil water heaters,
• Natural gas, propane or oil furnaces or hot water boilers,
• Improvements or replacement of panelboards, subpanelboards, branch circuits or feeders, and
• Home energy audits.

The limits for each category of these items that qualify for a credit is discussed later in Section A—Qualified Energy Efficiency Improvements.

[sunflowers3]

Thanks for response.  Still have questions.  The supplier broke down the prices for the furnace and central air.  Can I deduct both of them on my 2023 taxes.  If so what form and what line do I insert them?  This is new to me so sorry if I sound stupid.

[DoninGA]

The costs for the A/C unit and the Furnace unit are entered on the Form 5695 Residential Energy Credits.

They are entered on the screen labeled Enter Your Qualified Energy Property Costs.

You enter the cost of the A/C unit in the box labeled Central air conditioners

You enter the cost of the Furnace in the box labeled Water boilers (this box is mislabeled but it is the box for a furnace)

To enter Home Energy Credits -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credit
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits, click the start or update button

[sutturka]

I second this answer. I also contacted TurboTax support over a phone and after review they suggested to enter the cost of furnace under box labeled Water boilers. If you click learn more by this box, you will find this covers the category for furnaces.