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mvw1
New Member

Home Energy Credit is incorrect. Should be $300 (according to https://www.energystar.gov/about/federal_tax_credits/water_heaters_non_solar) but only get $150.

I installed a qualifying water heater in 2016, and the credit should be $300, but TurboTax doesn't seem to properly factor in that credit from form 5695 and instead indicates credit would only be $150.  Waiting to complete my filing until I have a better understanding of what I should do.  Thanks!
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1 Reply
mvw1
New Member

Home Energy Credit is incorrect. Should be $300 (according to https://www.energystar.gov/about/federal_tax_credits/water_heaters_non_solar) but only get $150.

I figured out the answer to my own question.  Basically it came down to entering the amount on the correct line.  After the following sequence of steps/answers:

Federal Taxes > Deductions & Credits > All Tax Breaks > Your Home > Home Energy Credits

Yes, I made energy-efficient improvements or have a carry forward.

No, the home is mine.

Yes, my home is in the U.S.

Yes, the improvements were made to my main home.

No, the improvements weren't related to the construction of my main home.

- I was then presented with these options under which to enter the amount spent on the qualifying hot water heater and its installation:

Exterior Doors 

Exterior Windows 

Metal or Asphalt Roof 

Insulation Material or System 

Energy-Efficient Building Property 

Advanced Main Air Circulating Fan Used in a Natural Gas,
Propane, or Oil Furnace

Furnaces and hot water boilers powered by
natural gas, propane or oil Learn More

I had initially selected Furnaces[...] as the category for the expense, but energy-efficient hot wat...

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