I'm claiming Investment Energy Credit and my system is producing less than 1 megawatt AC power. However, turbotax is still advising me to file form 7220

[Karis_F]

TurboTax does not support Form 7220, Prevailing Wage and Apprenticeship (PWA) Verification and Corrections, but this form does not seem to apply in this situation. 

To be eligible for the residential clean energy credit, your central air conditioner must meet certain efficiency requirements. Per the Energy Star website, the air conditioner must meet SEER2 ≥ 17.0 and EER2 ≥12.0 to be eligible for the credit.

See this TurboTax article for more information on the residential clean energy credit.

[ramynashed0]

Hi Karis,

Thanks so much for your reply.

I agree, this form doesn't apply to my situation. Do you know how I can bypass it? Turbotax is not letting me e-file my taxes since it thinks that I need this form.

Thanks,

Ramy

[Karis_F]

Try deleting the form. 

In TurboTax Online, go to Tax Home>Tax Tools>Tools then Delete a Form.

In TurboTax Desktop, you can delete the form in Forms Mode.

[ramynashed0]

I couldn't find it there

[AmyC]

Let's see if we can get Form 3468 to convince the program the Form 7220 is not required for you.

• Take a look at Form 3468, Pat I line 12. Be sure your capacity is entered in kilowatts and the number is below 1000 kw.
• Look at line 7, yes should be checked
• Line 8d is not applicable
• Review your entries in the interview, there should be a box to check Project has a maximum capital net output of less than 1 megawatt.

If you are using the desktop program, switch over to Forms mode. The 3468 lets you answer those questions with no override.

[andyoak]

I'm having the same problem. If I check "N/A" for line 8, it resets the credit to 6%.

I've spent hours the last 2 days on the phone with Turbotax support, and everyone simply keeps insisting that I have to select line 8a "prevailing wage applies" (which is clearly incorrect as it's N/A for <1mw systems). The agent seemed to agree with me based on the IRS info we were reviewing, but appears helpless to escalate it to someone who actually cares to fix it. I told him others would be contacting them with the same issue and they'd need to fix it at some point. It's really inexcusable to just ignore obvious issues.

It looks like I'll have to recover my payment to Intuit and switch to another product. But now I have to redo my entire tax return, which is a pain.

[xcturbotax]

I've done everything you mentioned. But turbotax is still saying 7220 form is required and I can't efile. 

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Let's see if we can get Form 3468 to convince the program the Form 7220 is not required for you.

• Take a look at Form 3468, Pat I line 12. Be sure your capacity is entered in kilowatts and the number is below 1000 kw.
• Look at line 7, yes should be checked
• Line 8d is not applicable
• Review your entries in the interview, there should be a box to check Project has a maximum capital net output of less than 1 megawatt.

If you are using the desktop program, switch over to Forms mode. The 3468 lets you answer those questions with no override.

[andyoak]

TurboTax has confirmed the issues for <1 mW systems of 30% not being allowed in Part VI and Form 7220 being incorrectly required, and says they’re working on a fix, but it may not be until after 4/15. 

[xcturbotax]

Looks like the bug is fixed after I update the desktop app this morning. 

[andyoak]

The 30% credit in Section VI on the online version isn't yet fixed. I didn't test Form 7220.