Did you update your software if you are using TurboTax download? If not, the program you are using may not be up to date with the forms and need updated to calculate the credit.
Do you have any tax liability? The Residential Energy Credit is a non-refundable credit, Look at line 16 on your 1040, then also look at line 24. If the amount on line 16 is less than the full credit, then this is the maximum amount of the credit you use this year will be that number. If you have other credits, that may also reduce the tax liability, this may also reduce the amount of the credit you receive.
Then look at line 24. If this line is $0, then you received one of more credits that brought your taxes down to $0. If this is the case, and you had multiple nonrefundable credits, you may not be able to claim the credit for your wood stove until a future year when you do have a tax liability.
If you are unable to use this credit in the year you install the equipment, this can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034.
If you do have a tax liability on line 16, you can go back and double check the answers as you walked through the interview.
In order to claim the credit you must
- Live in the home you installed the item in
- You must have purchased the equipment new, not used
- You can not rent this home to others if you do not also live in the home
- it must be your main home
- It must be in the United States
- You cannot use the property solely for business.
- If you use the home partially for business but less than 20% you can take the full credit.
- If you use the home more than 20% but less than 100% for business, you can take a prorated credit.
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