Home Energy Credit for 2023 purchases

[Sharon317]

My spouse and I are filing married filing separately (this works better for us than jointly) We made many home improvements that qualify for the home energy credit. My question is, can we each claim the credit if we split the total amount paid? For example, if we paid 10,000 on windows, can we each say we spent 5,000? 

[DMarkM1]

Yes.  You can enter shared costs and the credit will be divided according to your portion of the total costs.  In the "Home Energy Credit" topic you will be asked if you shared the costs with someone who also lived in the home; answer "Yes" to that question.  On subsequent pages you will be asked to enter your costs and the total cost of each improvement.  Those entries will establish a proportion used to allocate the credit amount.  For example, if the maximum credit for your improvements is $1200 and you spent $6000 while the total cost was $12,000, then your max credit will be 50% of the the available credit (1200) or $600.  

[Sharon317]

Thank you! If we made enough home improvements where we both end up getting the $1,200 max credit is that allowed?

[DMarkM1]

No.  The maximum credit for the improvements on your home will be $1200 (plus $2000 for heat pump/bio mass stoves) which will be shared by the owners.  So if the costs are shared 50/50, the maximum for each of you will be $600 (plus $1000 for heat pump/bio mass stove).  TurboTax will make all those calculations for you based on your entries.