Energy Efficient Windows Deduction

Forum|Forum|6 years ago
February 25, 2020
1 reply
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Lived in another home in 2012 and replaced my windows with energy efficient windows in which i was able to get a tax deduction from in 2012. Last year, I bought energy efficient windows again- but now for a different home in which i now live. I no longer live in the home from 2012. Can i still get a deduction credit for these 2nd set of windows?

Best answer by JotikaT2

It depends.

There is a lifetime limitation on your window expenses. The amount you may be able to deduct is determined by entering the credit entered in the prior year against the amount you are currently claiming. It is not an improvement per house credit, but a taxpayer credit.

Window limitation

Form calculation section

I recommend you go ahead input your information as directed below. TurboTax will do the calculation based upon the amount of the credit from the prior years against the amount spent this year.

Go to the Federal section
Select "Deductions & Credits"
Scroll through all tax breaks until you see the section titled "Your Home."
To the right of "Home Energy Credits", select revisit/start

Answer the questions as prompted. You will get to a screen which starts asking for information regarding carryforwards from prior years. Enter the information as it applies to your situation.

Pay attention to the questions as they start with 2019 information and then go into improvements from prior years. The information requested for the prior years will show you the year, Form 5695, and the applicable line number.

Prior year windows improvements

JotikaT2

Answer

Employee Tax Expert