Energy tax credit not applied in federal review

[turbostewart1]

I submitted an energy tax credit for a biomass stove. It looks ok until I look at the federal tax review screen. I does not show or include the credit as it did for last year when I had bought the first stove.

[DawnC]

The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes.    Preview Form 1040 and look at line 22 to see if you have any tax liability to apply the credit to.

Heat pumps and biomass stoves and boilers with a thermal efficiency rating of at least 75% qualify for a credit up to $2,000 per year. Costs may include labor for installation.

Qualified improvements include new:

• Electric or natural gas heat pumps
• Electric or natural gas heat pump water heaters
• Biomass stoves and boilers

[Opus 17]

The form that includes energy efficiency credits is broken right now.  It may work ok for some people but does not work for all.

The credit for biomass stoves has been changed, for 2023 the credit is 30% of the cost for equipment plus installation with a maximum of $2000.  It's on line 29a-29f of form 5695.

However, as mentioned, the credit can't be refunded unless you owe tax.  If you already have enough credits or deductions to cancel any tax you owe, you can't get the credit.  (This dos not mean a refund.  For example, if your tax owed is $5000 and you had $6000 of withholding, you get a $1000 refund.  That $5000 tax liability is the key number, not the refund amount.)

But in addition to that limit, the form is not working correctly for some taxpayers. 

[dtang168]

It seems that Turbotax 2023 is having problem with this form.  My issue is that I am not able to enter in the address of my property where I had made the improvements.  In the screen that tells you to list the address of the properties where the improvements, I get a black box listing address, unit, state (but state shows up really small and squeezed, zip).  If I click around the screen, I see a line below the black box under each of the label.  However, when I tried to enter in the information, nothing shows up.  When I click to continue, I get a message stating that I need to enter in the complete address.  I tried to change the resolution of my screen, but this doesn't help.  Also, I tried to click around a few times and the app froze.  I am running Turbotax 2023 on the latest Macbook Air.  Any help would be appreciated.  I am going to try to reboot my laptop and try one last time.

[PatriciaV]

If you are using TurboTax for Desktop, you may wish to complete this form using Forms Mode to avoid using the interview input form.

1. Open your return and click the Forms icon in the TurboTax header.
2. Scroll down in the forms list on the left to Form 5695.
3. Click the form name to open it in the large window.
4. When you have completed your entries, click on Step-by-Step in the header to return to the main screens.

[Lojikal]

Is there a estimated resolution for this bug in the energy efficiency credits?

[RachelW33]

There has been an update to the program and the Energy Efficiency Credits should be working properly.  

If you are using the desktop/download version of TurboTax, please make sure you have the latest program updates: How do I update my TurboTax Desktop Software Program?

If you are using TurboTax Online, please clear your cache and cookies: How to Clear your Cache and How do I delete Cookies?

@Lojikal 

[Tomasso]

I purchased and installed a heat pump in 2023, it is April 14 and the $2,000 home energy credit is NOT being applied properly in my TT Deluxe 2023, and yes all software updates have been applied. After I entered the relevant information under "Home energy credits", TT says “Good news: you qualify for $2000 home energy credit". Then $2000 appears in the Deductions and credits tab in the “Your home” section, along with $11,141 from 2022 (installed solar panels). 

 Yet when I push “Done with deductions and credits”, TT claims to check for all deductions and credits, and  shows summary page (“Here are your 2022 and 2023 deductions and credits”) - that $2000 doesn’t appear on TT federal tax summary page (even though the 2022 solar panel credit does).

This year I *owe* $20K to the IRS, so there is no refundable/non-refundable issue. I'm at my wits-end, but it seems TT is seriously broken in this regard.

Has anyone else had this problem?

[Vanessa A]

Look at your form 5695 to see if you received the credit.  The summary screens are not always complete.

Your forms are accurate, what you are see on your form 5695 and Schedule 3 line 5, is the actual credit you are receiving.  Also, the tax amount you owe is the actual tax amount you owe.  It is just the summary screen does not always populate for some reason.  But, there is an accuracy guarantee of the forms. 

[michelle_mahler]

Where is the forms option??

[BrittanyS]

You can access Forms Mode in TurboTax Desktop.  In Desktop, click forms in the upper left corner.  See screenshot below:

You can enter the Energy Efficiency Credit by following these steps provided by TurboTax:

To add or remove this form:

1. Open or continue your return.
2. Navigate to the residential energy credit section:
   • TurboTax Online/Mobile: Go to residential energy credit.
   • TurboTax Desktop: Search for this exact phrase including the comma and spaces: 5695, residential energy credit. Select the Jump to link.
3. At the bottom of the Energy Efficient Home Improvements screen, answer Yes, then select Continue.
   • To delete the 5695, answer No, select Continue, and then answer Yes on the following screen to confirm the deletion.
4. Follow the instructions to enter your energy-saving improvement costs.

See the link below for more information:

• How to enter the Energy Efficiency Credit

 [Edited 03/11/2025 | 3:18 pm PST] 

@michelle_mahler