I had insulation installed in my home last year, i entered all the information on turbo Tax for home energy credit. the summary said based on what you've entered so far we can't get the credit for 2024 and have no credit to carry forward to 2025 - What's

[MindyB]

First, make sure you have completed the rest of your return. The energy credit is non-refundable, so if you don't have enough income tax being computed, the credit could be limited. Also ensure all the questions about the location of the house in the US and the living in the house are answered. 

Next, let's revisit the entry, and make sure the expenses are listed in the correct place, because some other energy-efficient improvements have lower credits available. You would have needed to spend at least $4,000 on the insulation to receive the maximum credit of $1,200.  The available credit is 30% of the cost, not to exceed $1,200.

1. Upon opening TurboTax, choose Deductions & Credits

2. Locate Your Home 

3. Start/Revisit Home Energy Credits

4. On the Energy Efficient Home Improvements screen, select Yes then Continue. 

5. Answer the next few questions until you get to Did you have any of these qualified energy efficiency improvements in 2024?  Insulation material or air sealing system is listed here.  Select Yes and continue.

6. Make sure you enter the total cost and answer the questions about ownership and location of the home.

[medic5152]

Thank you for the response, I followed your suggestions and it changed to a $56.00 credit.  I filed for $3500.00 would this be the normal credit? 

[DianeW777]

It depends.  The credit is limited to your tax liability and any excess is lost.  Any excess is not carried over to another year. 

The credit available for 2023 through 2032: 

• 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit.

Check your Form 1040, Line 20 and Schedule 3, Line 5b using the steps below.

1. From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)
2. Select Tax Tools 
   
3. On the drop-down select Tools 
4. On the pop-up menu titled “Tools Center”, select View Tax Summary 
5. On the left sidebar, select Preview my 1040 

For TurboTax Desktop, change to 'Forms' and review the forms (1040, Schedule 3 and Form 5695). 

@medic5152  

[medic5152]

To refine my question, After completing all the questions on the form it stated that I would receive $59.00 in Home Energy Credits after entering $3500.00 in product. What I'm asking is this normal or should I receive the entire $1200.00

What do you think

[Vanessa A]

Yes, this can be normal depending on your personal tax situation.   Not everyone qualifies for the full credit.  If it is saying your credit is $59 for Home Improvement Energy Efficient Credit, it is likely because you only have a $59 tax liability. This credit is a nonrefundable credit. A nonrefundable credit is not able to be fully used when you have no tax liability or less liability than your credit.   Look at line 16 on your 1040, then also look at line 24. If the amount on line 16 is less than $1,200, then you would not be eligible for the full credit.  If you have other credits, that may also reduce the tax liability, this may also reduce the amount of the credit you receive.  Then look at line 24.  If this line is $0, then your credit was limited by your tax liability.  This would be the most likely reason your credit is only $59 instead of $1,200.