Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Jan 19, 2024 7:54:23 AM

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

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.

7 74 12504
1 Best answer
Level 15
Jan 19, 2024 7:59:51 AM

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...

24 Replies
Level 15
Jan 19, 2024 7:59:51 AM

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...

Level 2
Jan 19, 2024 8:34:12 PM

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?

Level 15
Jan 20, 2024 6:01:08 AM


@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?


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

Level 2
Jan 22, 2024 7:39:10 AM

.

Expert Alumni
Jan 22, 2024 8:40:15 AM

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?

Level 1
Jan 27, 2024 8:05:22 AM

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

Level 1
Jan 27, 2024 2:47:50 PM

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.

 

Level 2
Jan 27, 2024 3:02:42 PM

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.

Employee Tax Expert
Jan 27, 2024 3:03:45 PM

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 

Employee Tax Expert
Jan 27, 2024 3:06:20 PM

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


 

Level 2
Jan 27, 2024 3:36:31 PM

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. 

Employee Tax Expert
Jan 27, 2024 3:40:05 PM

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 

New Member
Jan 30, 2024 1:40:18 PM

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?? 

Level 15
Jan 30, 2024 1:43:05 PM


@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?? 


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...

New Member
Jan 30, 2024 3:06:07 PM

Starting with Tax Year 2023, the IRS made major changes to the Energy Efficient credits.  I noticed when I was doing my TurboTax on 12/30/24 that TurboTax still showed the info for the program that ended on 12/31/22.  You can look up the changes on IRS.gov. It seems that the TurboTax program has not been updated to reflect the TaxYear 2023 changes.

Level 3
Jan 31, 2024 7:24:31 AM

This is every year things are pushed back. Even forms that are finalized in November/December, it always takes TurboTax forever to finalize them. And watch next year, this form will stay the same but TurboTax won't have it ready for when filing season begins.

Level 15
Jan 31, 2024 7:28:00 AM


@Jedi4380 wrote:

This is every year things are pushed back. Even forms that are finalized in November/December, it always takes TurboTax forever to finalize them. And watch next year, this form will stay the same but TurboTax won't have it ready for when filing season begins.


TurboTax cannot finalize the Form 5695 for tax year 2023 until the IRS finalizes the Form 5695 Instructions for 2023.  The IRS instructions are still in draft mode - https://www.irs.gov/pub/irs-dft/i5695--dft.pdf

 

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...

Level 2
Jan 31, 2024 7:34:03 AM

This is not a turbo tax problem.  The IRS does not have the 2023 instructions finalized yet.  Every other tax preparer is having this issue with form 5695.

New Member
Jan 31, 2024 12:57:47 PM

Turbo Tax now says 2/7/24. This is silly.

Level 1
Feb 1, 2024 6:32:26 AM

Intuit is doing itself no favors.  Per the link above, it "kicks the can down the road" another week --- to 02/07/2024.

Level 2
Feb 1, 2024 8:00:04 AM

Looks like the instructions are official now, they no longer say draft on them.  Hopefully TT gets the update pushed out soon.

 

https://www.irs.gov/prior-year-forms-and-instructions?find=5695&items_per_page=200&order=prior_year_products_picklist_revision_date&sort=desc

 

Level 3
Feb 1, 2024 8:56:37 AM

Yes, hopefully done in the next few days. But it sounds like there may be a 1040X in my future if the Child Tax Credit expansion passes and less likely but still possible a SALT Deduction expansion.

Employee Tax Expert
Feb 1, 2024 9:00:23 AM

If the child tax credit law would change for 2023, generally, for those who file before the law is finalized will not need to amend their return.  The IRS will make the adjustments for the people who previously filed.  So, if the law does pass, the best thing to do is to wait for IRS guidance on whether they will automatically make adjustments or if you will need to amend.  For the past several years, they have mostly made the adjustments without people needing to amend. 

Level 2
Feb 1, 2024 4:05:55 PM

Got my fingers and toes crossed. I am ready to get my taxes e-filed and done with