High Efficiecy Heat Pump Credit

[bluepuli]

I purchased a high efficiency heat pump in 2023.  The instructions for form 5695, lone 29a  indicate I should enter the cost up to 2000.00.  The software doesn't seem to have a spot to enter my installation cost for this tax credit using the step by step method.  Can you tell me where I am supposed to enter my installation cost to have it show up in Form 5695, line 29a?

[xmasbaby0]

Energy forms are not ready yet.

 Click Review to see if you are missing some forms needed in order to e-file.

Many federal and state forms are not yet available.  Check here for form availability. The dates are subject to change.

Tax form availability tool,

No hurry to e-file since the IRS will not begin to accept/reject 2023 e-files until January 29.   And….a state return cannot be accepted until after the IRS accepts your federal return.

[bluepuli]

I assume you mean the step by step software will be updated later as in Form view the 2023 version of form 5695 does show up now.  Other information is there in its proper line location.  What's missing is the place in step by step to input the heat pump info.

[DoninGA]

If you are referring to an electric heat pump and not a geo-thermal heat pump -

Qualified energy property is any of the following.
• Certain electric heat pump water heaters; electric heat pumps; central air conditioners; and natural gas, propane, or oil water heaters.

Enter the cost in the box labeled Energy-Efficient Building Property.

[bluepuli]

I tried that.  It does not enter the information on line 29a.  It actually reduced my energy credit carryover from last year.  The turbo tax information for the Efficient Building Energy box indicated a 300.00 max.  This heat pump credit is a 2000.00 max credit.

[DoninGA · Accepted solution]

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@bluepuli wrote:

I tried that.  It does not enter the information on line 29a.  It actually reduced my energy credit carryover from last year.  The turbo tax information for the Efficient Building Energy box indicated a 300.00 max.  This heat pump credit is a 2000.00 max credit.

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Understand.  I have the same issue on my return.  This will all be corrected when the Form 5695 for tax year 2023 becomes available.  It is currently scheduled to be available on 01/24/2024 but more than likely it will be available on 01/25/2024 since Thursdays are when TurboTax does software updates.  But like everything else that date is subject to change.

[Gridge1]

Do you know if this has been updated yet? I bought a qualifying Trane electronic heat pump in Dec 2023 and can't figure out where to enter this info to get the max credit. Appreciate any guidance!

[bluepuli]

The update we are waiting for has been delayed.  The new schedule has the update date for form 5695 listed as 1/31. Let's hope that it's ontime and solves the issue on claiming the high efficiency heat pump credit. 

[DoninGA]

@bluepuli @Gridge1 

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

[bluepuli]

Apparently delayed again. When I checked Thursday it was 1/31.  Thanks for the update. 

[Alfred14]

I have the same need to claim a cost related to a 2023 heat pump installation, which needs to appear on line 29a of IRS form 5695.  When will Turbo be updated to accommodate this transaction so this form can be completed properly?  Thank you for any information.

[MayaD]

Form 5695 Residential Energy Credits won't be available for use in TurboTax before 02/07 /2024. 

Tax form availability

[bluepuli]

Form 5695 is now available and the step by step method allows you to enter the cost of high efficiency heat pumps.  Max credit is 2000.00.

[pb36]

I believe I filled it out, but the automation is saying that I only get $64 credit rather than the $2000 that it should be. Is there something wrong with their computing or am I filling out their form incorrectly? 

[bluepuli]

The tax credit is 30%, up to a maximum of 2000.00.  The cost of your heat pump should show up on line 29a of Form 5695 when you go to form view. The software then calculates the amount of your credit.  It is not refundable,  so you must have at least 2000.00 of tax liability to get the max credit.