Form 5695

To enter your Residential Energy Credits (Form 5695) in TurboTax Online:

• Open (continue) your tax return in TurboTax Online.
• Click My Account (top right of your screen).
• Click Tools.
• In the pop-up window, click Topic Search.
• In the search bar, type 5695.
• In the topic box, highlight 5695, residential energy credit, then click GO.
• Follow the onscreen instructions to enter your Energy-Saving Home Improvements.

When you are on the energy efficient credit section, the first screen will only ask you about alternative energy sources, such as solar and geothermal power.  Click next or continue, and the second screen will ask about insulation, air conditioning and the furnace. The air-conditioning and the furnace are entered on separate lines. The air conditioner is eligible for up to $300, and I believe the furnace is only eligible for up to $150. The credit is 10% of the amount of the appliance. If you are audited, you will need to show something that supports how you allocated the cost between the furnace and the air conditioner. Ideally, your contractor will give you a specific breakdown.

thanks!

Thanks!

Where I can find form 5695

Taxpayers use Form 5695 to figure and take their residential energy credits. 

• Login to your account.
• Select Federal from the left menu.
• Go to Deductions and Credits.
• Scroll down to Your Home and click shown more.
• Click start next to Home Energy Credits

I didn’t claim this originally.  How do I amend my return and where do I input the information?  It’s for a new water heater!

If you filed, it is like dropping it into a mailbox - you cannot get it back. 

You'll have to wait until your return is either accepted or rejected. 

• If rejected, you can make any necessary changes. 

• If accepted, you'll need to amend your return.   

• To avoid unnecessary delays, do not amend until your original return has been fully processed.   

• You can e-file your 2020 amended federal tax return, but most states require amendments to be printed and filed by mail. 

• Allow 16 weeks for processing. 

See this TurboTax FAQ for help with amending. 

You can check the status of your amended return here, but allow 3 weeks after filing for it to show up. 

If your water heater qualifies as an energy efficient improvement.  These are entered in the Deductions & Credits section: 

• With your return open, search for energy improvements in the program search box. (Don't search for "energy credit," as this will take you to the wrong place in the program.) 

• Click Jump to energy improvements in the search results. 

• At the bottom of the Energy-Saving Home Improvements screen, answer Yes and click Continue. 

• Follow the on-screen instructions. 

It appears that form 5695 is all set on Turbo Tax yet it shows that the form will be available "soon". Is this an error within the program?

No, this is not an error. According to the forms availability schedule, the form will be finalized on our site sometime on 1/27/2022. 

Under the Residential Energy Efficient Property Credit, you can get a federal tax credit for installing alternative energy equipment, such as solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, and fuel cell property.

If you made energy efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you'll be able to claim the Nonbusiness Energy Property Credit for 10% of amounts paid for qualified energy efficiency improvements, up to a lifetime cap of $500 or fixed dollar amounts ranging from $50 to $300 for energy efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.

@msinnamon 

The program is currently using last year‘s version of the form. Depending on what credit you claim, you may still get an accurate calculation. But you won’t be able to file until the form is finalized. And for some calculations, the form is currently inaccurate.

Thank you for clarifying that the form currently on the system is last year's form as I had completed the one currently online and knew what credit I was eligible for.  I'm eager for the approved version to be posted so that I can finish up my return and get it filed.  

we filed, form 5695 carry forward to 2021 on our 2020 taxes.  - no problem

on our 2021 taxes - we are trying to file now - it says our credit will not carry over until 2022

(our solar panels were installed in 2019)

shouldn't the carryforward from 2020 be processed for our 2021 taxes ?

Yes, the amount carried over from your 2020 can be used on this year's (2021) tax return that you are preparing now in 2022.   However, if your tax bill has already been reduced to zero this year, the credit will carry over to next year's tax return (2022) that you will prepare in 2023.   Do you have a tax liability on Line 16 of your Form 1040?    

@aggiemom

Where do I find the place on my 1040 SR to add info for 5695?

Use Form 5695 to figure and take your residential energy credits. 

• Login to your account.
• Select Federal from the left menu.
• Go to Deductions and Credits.
• Scroll down to Your Home and click shown more.
• Click start next to Home Energy Credits

Where do I put credit for energy efficient air conditioner

Have the cost ready for your HVAC or air conditioner and enter them using the steps provided by our awesome Tax Expert @PattiF, printed here for your convenience.  The company who installed it will know if it's a qualifying energy saving unit for tax purposes.

1. Sign into your TurboTax account.
2. Select Federal from the left menu.
3. Go to Deductions and Credits.
4. Scroll down to Your Home and click shown more.
5. Click start next to Home Energy Credits
6. Continue to Qualified central air conditioners

Use the screen images below to enter your costs 

@Bettygrady1

 How do I upload certification for my qualified HVAC into Turbo Tax?

 How do I upload certification for my qualified HVAC ? Do I have to fill out the form 5695 or does turbo Tax do that?

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@Bobbie21 wrote:

 How do I upload certification for my qualified HVAC into Turbo Tax?

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You do not.  There is no requirement to upload the certification for an HVAC.

Hi -- Last year I was able to take a $300 credit against a $10,000+ installation of mini-split air and heat units.  I know there is a $500 limit on the credit total and I should be able to take another $200 credit against another $10,000 cost I incurred in 2022, but when I enter the info, Turbo Tax tells me that my home energy credit for 2022 is zero ... Why?

Please take a look at your Form 5695 to see which line is stopping the credit. Lines 14  and 29 limit the credit based on tax liability. Line 12 has any carryover.

Here are  Instructions for Form 5695.

Use Form 5695 to figure and take your residential energy credits. The residential energy credits are:

• The nonbusiness energy property credit, and
• The residential energy efficient property credit.
• Changes for 2023 to $1200 annually instead of $500 lifetime, see FAQ Energy 
• Energy Incentives for Individuals: Residential Property | Q & A

To see your forms:

• In desktop, switch to Forms Mode. 
• For online, see How do I preview my TurboTax Online return before filing?