"Home Energy Credits" (5695) doesn't allow windows

[ddunne]

"step-by-step" does not provide the ability to supply an amount for energy efficient windows - though form 5695 supports it.  How to?

[Vanessa A]

To enter your windows, you will need to walk through multiple questions first starting with questions about solar and your address, then you will come to a screen that says Tell Us how much you paid for energy saving Improvements.  Exterior Windows are listed at the bottom of the list below All Other Exterior Doors.

If you are not seeing this question, it could be for a couple of reasons.

1. Your TurboTax program is not up to date.  To update your program click on Online at the top and then check for updates
2. You answered a question in a manner that disqualifies you from taking a Home Energy Efficiency Improvement Credit.  This could be that you don't expect the improvements to remain in use for 5 years or that the improvements were not made to your primary home or were due to construction of your home.  If it was for construction of your home, then you are not eligible for the credit for windows.

If you this was to your main home, in the US and not related to the construction of your home, go back and double check your answers to be sure you didn't inadvertently answer a question the wrong way.  You should then be able to get to the box to enter the purchase price of your windows and claim the credit. 

[TheTexasGuy]

I am not seeing the exterior door and windows question also. I am using the website so there is nothing to update. I selected improvements is to our primary home, but it only ask questions about solar panel costs.

[DoninGA]

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@TheTexasGuy wrote:

I am not seeing the exterior door and windows question also. I am using the website so there is nothing to update. I selected improvements is to our primary home, but it only ask questions about solar panel costs.

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You need to Continue past the screen for entering solar costs.  You will land on the screen labeled Tell Us How Much You Paid for Energy-Saving Improvements.  Enter the cost of the doors and windows on the this screen.

[TheTexasGuy]

Thank you for the quick replay, after the solar questions it takes me to the end. It does not ask about windows.

[DoninGA]

@TheTexasGuy Have you upgraded your desktop software to the latest release?

Click on Online at the top of the desktop program screen.  Click on Check for Updates

[DaveF1006]

It depends. If you answered the question with a "yes" answer asking if the improvements were related to the construction of your new home, then these credits do not extend to the windows you had installed. If you answer "no" to the question, then the windows will appear in the interview if these are expected to last more than 5 years. 

The main reason for this caveat is that windows need to be an improvement to your existing home.  Please review this in the following IRS document. Look under the section Who qualifies.

You may claim the energy efficient home improvement credit for improvements to your main home. Your main home is generally where you live most of the time.

For the energy efficiency home improvement credit, the home must be:

• Located in the United States
• An existing home that you improve or add onto, not a new home

[Opus 17]

I think there are a couple of issues here.

1. Turbotax's current version of form 5695 is broken.  It denies all credits unless you say it was your main home.  This is incorrect, because some credits are allowable for other dwellings you use as a residence even if it is not your main home.  I have seen an unofficial fix date of Feb 23. 

2. However, a credit for windows is only allowed if the windows are installed on your main home (your principal residence).  

If you answer "yes" for principal residence, you need to click past the solar credits and keep going.  If you answer "no" for principal residence you aren't eligible. 

[TheTexasGuy]

The improvements were done to my current main home, not a new home. I selected 

"Yes, all of the improvements were related to the construction of my main home."

And it did not ask the window question, 

I selected No and it is asking the quest window questions now. 

This question is a little confusing.

Thank you

[Opus 17]

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@TheTexasGuy wrote:

The improvements were done to my current main home, not a new home. I selected 

"Yes, all of the improvements were related to the construction of my main home."

And it did not ask the window question, 

I selected No and it is asking the quest window questions now. 

This question is a little confusing.

Thank you

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That's why then.  The energy credits under section 25D (solar, geothermal, wind, fuel cell) are allowed for new construction or an existing home, but the credits under section 25C (doors, windows, insulation, air conditioner, furnace, heat pump) are only allowed if they are improvements to an existing home.  

A home builder who installs certain efficient items may be eligible for a different credit that goes on a different form.

https://www.irs.gov/credits-deductions/credit-for-builders-of-energy-efficient-homes

If you are building your own home, you may want to investigate this credit, I don't know anything about it.  But you are not eligible for credits under section 25C on form 5695.