How can I claim residential energy credits for electric heat pumps and heat pump water heaters?

[acjaz]

I don't see a place to claim these in the 'Home Energy Credits' section of 'Deductions & Credits'. It corresponds to lines 29a and 29b in Form 5695 Part II, Section B (Residential Energy Property Expenditures). The closest line is 'Energy-Efficient Building Property', but this is capped at 10% or $300. There should be a separate credit of 30% or $2,000 for heat pumps.

[DoninGA · Accepted solution]

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 01/31/2024 (subject to change).

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

[lreimer74]

I asked a similar question late last year ... was told it would be implemented in early Jan and now its Jan 31 ... the IRS form is updated why not TurboTax?

[DoninGA]

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@lreimer74 wrote:

I asked a similar question late last year ... was told it would be implemented in early Jan and now its Jan 31 ... the IRS form is updated why not TurboTax?

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The IRS instructions for Form 5695 have not been updated for tax year 2023.  Until the IRS has formalized the instructions, TurboTax cannot update their program.

IRS Form 5695 (2022) - https://www.irs.gov/pub/irs-pdf/i5695.pdf

[gonecks1]

.

[MayaD]

Under the Inflation Reduction Act of 2022, federal income tax credits for energy efficiency home improvements will be available through 2032

Where do I enter qualified energy-saving improvements?

Can I claim energy-efficient appliances or energy-saving home improvements?

[stuinzuri]

Don't blame TT.  The IRS has yet to finalize the form.  As of today, the 27th, the 2023 form 5695 is still a draft.

https://www.irs.gov/pub/irs-dft/i5695--dft.pdf

[drdcduck]

From this it looks like the IRS form is ready. 

https://www.irs.gov/pub/irs-pdf/f5695.pdf

only the instructions had a draft watermark.

[gonecks1]

The form has been ready for a while but the instructions are not.  I don't know why the IRS wouldnt update them at the same time, but that's what it is.

[LeticiaF1]

Currently, the section for Energy Credits is not available as we work on updates to recent tax law changes.  For now, you can work on other sections of your return.  When the section is ready, you will be able to find it following the next steps. 

1. Open or continue your return
2. Select Search and enter Energy Credits
3. Select Jump to Energy Credits

See the attached link for form availability dates:

Tax form availability

@stuinzuri 

[LeticiaF1]

Currently, the section for Energy Credits is not available as we work on updates to recent tax law changes.  For now, you can work on other sections of your return.  When the section is ready, you will be able to find it following the next steps. 

1. Open or continue your return
2. Select Search and enter Energy Credits
3. Select Jump to Energy Credits

See the attached link for form availability dates:

Tax form availability

[Laurie90267]

It is now scheduled to update on 2/7/2024. I have been waiting on this update for over 2 weeks now. I have tried to delete it and it immediately comes back. Now it looks like I will be waiting another week and a 1/2 before I can e-file, if the date doesn't change again SMH. 

[LeticiaF1]

Currently, the section for Energy Credits is not available as we work on updates to recent tax law changes.  For now, you can work on other sections of your return.  When the section is ready, you will be able to find it following the next steps. 

1. Open or continue your return
2. Select Search and enter Energy Credits
3. Select Jump to Energy Credits

See the attached link for form availability dates:

Tax form availability

@Laurie90267 

[rob2266]

The form 5695 looks to be correct but the input questions need to be updated to include the additional energy efficient products. Is that part of the software update?? 

[DoninGA]

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@rob2266 wrote:

The form 5695 looks to be correct but the input questions need to be updated to include the additional energy efficient products. Is that part of the software update?? 

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Yes, it is.

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...