Form 5695 - TurboTax Deluxe 2021 Online version

[chancetribe]

The TurboTax Deluxe 2021 Online version of Form 5695 does not seem to support the non-capped biomass fuel stove credit.  Can anyone confirm if the desktop version supports it correctly before I purchase it?  The online version is capping the credit at $300 based on the verbiage: 

You can get 10% of the cost of energy-efficient building property or $300 (whichever is less) as a tax credit.

However, the IRS code and TurboTax online support both say that this is uncapped for tax year 2021.

• A biomass fuel stove used to heat your home (or water for your home) that has a thermal efficiency rating of at least 75%. Wood and wood pellets are considered biomass. For 2021, the credit isn't capped and covers 26% of the full cost (purchase and installation).

[DoninGA]

Both the TurboTax online editions and the TurboTax desktop edition have entry of a Biomass Fuel property on the Form 5695.

When in the Home Energy Credit section of the program you do Not enter the Biomass Fuel property on the screen labeled Tell Us How Much You Paid for Energy-Saving Improvements and do Not enter the cost in the box labeled Energy-Efficient Building Property.  Continue past the screen and answer the questions on the following screens until you land on the screen Enter Any Additional Energy-Efficient Improvements.  Enter your cost of the Biomass Fuel property in the box labeled Biomass fuel property.  This will make the property eligible for the 26% energy credit on your tax return.

[chancetribe]

@DoninGA - Thank you much for the detailed reply.  I am still not understanding the math that TurboTax is using.  I am only seeing a reduction of $516 when adding the Biomass fuel property amount (using $16,000 as a placeholder until I can get the exact amount) leaving me still owing Federal tax.  I would have thought I would see a reduction of 26% of the $16,000 up to the amount of my Federal Tax that is due.  I am misunderstanding how the tax credit is working.  Again, thank you very much for the help.

Jeremy

[chancetribe]

Interestingly, when I add the Biomass fuel property amount, it also decreases my state refund by $208.

Jeremy

[chancetribe]

Never mind.  I found the issue.  I should have noticed the numbers going from red (paying tax) to green (getting a refund).  Your solution did work, once I paid attention to what the screen was telling me.  

Jeremy

[DoninGA]

@chancetribe I just entered $10,000 in the Biomass fuel section in the Home Energy Credit section.

This amount flowed to the Form 5695 Line 6a and was multiplied by 0.26 with the result of $2,600 on Line 6b.

The $2,600 flows to Schedule 3 Line 5 and then flows to the Form 1040 Line 20.  The taxes on the Form 1040 Line 18 of $3,241 were reduced by  the $2,600 on Line 20 with the result on Line 24.

I am using the 2021 Premier desktop edition with the latest software release.  It appears to be subtracting the energy credit correctly from the taxes.