I'm trying to get the $2000 tax credit for the heat pump water heater. But I do not see an option for that. I looked through all the Energy saving section.

[shafer0219]

It's working just fine.  You should probably have a tax professional do your taxes if you don't understand how this all works.  You won't get the full $2000 back if you don't have a tax liability.  

[shafer0219]

It's working just fine and your doing something wrong.  It's not Turbo Taxes responsibility that your not inputting something incorrectly.  Hire a tax professional.

[Jmdenver01]

Lol another shill for TT.   Not sure what the exact circumstance is here but the repetitive and non-resposive "you're an idiot, hire a tax pro" posts are absurd.  That being said the form finally updated for me.  Still a mess.  No where does it mention high efficiency gas furnaces should be listed under "boilers " which the actual IRS form does.   Anyway, got my 2600 bucks (heat pump and gas furnace), but you have to wonder what else is screwed up.  

[rjs]

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@Nance59 wrote:

I just went back on Turbotax and entered my information for my heat pump and it's saying I get a $953 credit - it's supposed to be $2000!!!  What the hell?  Is the form 5695 updated or not?

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@Nance59  The credit for a heat pump is not "supposed to be" $2,000. It's a maximum of $2,000. You don't necessarily get the maximum amount. Look at Form 5695 to see how the credit is calculated.

[Nance59]

How do you know what your tax liability is?  I assumed it didn't matter what you had - if you put these energy savings into your home you should get the full amount - No??!

[shafer0219]

Not trying to be a jerk but if you don't know what your tax liability is you should have a tax professional do your taxes.  How much was the purchase price of your heat pump water heater?

[Nance59]

The heat pump/air conditioner was $14,300.  We are retired and i'm not paying a tax guy $200 to do my taxes when it's only SS and annuity , sorry I'm not savy on taxes

[Nance59]

Just looked it up - it's 12%

[shafer0219]

The only qualification required is that you have a tax liability.  Some people will get $0 to $2000 and anywhere in between.  It's not just an automatic $2000.

[Nance59]

That just doesn't make sense - along with everything else this gov't does - the "bill" says nothing about what your tax liability is - just says you will get $2000 back - screw the working class I guess - thanks for your answers!

[chrisingrassia]

@Nance59 your "tax liability" is basically what the IRS says you owe them based on your AGI, based on the graduated income tax tables for 2023. The home energy credits are non-refundable, they provide 1:1 tax credit on liability. It's basically impossible to explain to you without you providing specific figures, this is why it's recommended to have a CPA specifically 1:1 consult you, or pay a bit extra for TT CPA advice. My guess is that your $932 home energy credit (or whatever the amount you said was) is how much tax liability you had leftover so once it brings you to $0 fed tax owed then your credit is done. 

I'll let others (.....or your CPA) explain if there's carry-forward leftover for you.

[shafer0219]

I read it and it actually states all of that.

[Nance59]

Thanks - we owed 700 so with the 932 "energy credit" we will get 232 refunded - I thought the energy credit would go towards what you "owe" and the rest would be carried over to next year?  Not a refund....

[rjs]

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@Nance59 wrote:

How do you know what your tax liability is?  I assumed it didn't matter what you had - if you put these energy savings into your home you should get the full amount - No??!

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@Nance59  No, that's not the way nonrefundable credits work.

[rjs]

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@Nance59 wrote:

That just doesn't make sense - along with everything else this gov't does - the "bill" says nothing about what your tax liability is - just says you will get $2000 back

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@Nance59  The credit is nonrefundable, so it is automatically affected by your tax liability. The bill doesn't have to say that explicitly. And it doesn't say you will get $2000 back. It says you will get not more than $2,000. The $2,000 is a maximum, not a minimum or a fixed guaranteed amount.