Your central heat and air conditioning system may qualify for a Residential Energy Credit (specifically, the Nonbusiness Energy Property Credit) if it meets the criteria described in IRS Instructions for Form 5695, Residential Energy Credits. You can get a credit of up to 10% of the cost of your energy-efficient building property, with a dollar limit of $300.
Note: Energy credits are available for several different types of energy-saving improvements. There is a combined lifetime credit limit of $500, so if you claimed an energy credit in a prior year your credit this year may be limited.
To get to the Energy Credits section in TurboTax:
- Continue working on your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
- Click Tax Tools (lower left side of your screen).
- Select Tools.
- In the pop-up window, select Topic Search.
- In the I'm looking for: box, type 5695.
- In the results box, highlight 5695, residential energy credit, then click GO.
- You'll land on the Energy Saving Home Improvements page. Check Yes, I made energy-efficient improvements or have a carryforward, then click Continue.
- Continue following the onscreen instructions in this section. You'll be able to enter the cost of the heating and cooling system when you get to the screen that states Tell Us How Much You Paid for Energy-Saving Improvements. (Click the screenshot below to enlarge it for reference.) Enter the cost of your energy-saving property. Click the Learn more link next to Energy Efficient Building Property for more information.
Note: If using the TurboTax CD/Download software, you'll use the Find function and "Jump to" link (instead of "Tax Tools") to search for the topic.
See also Energy Tax Credit, Which Home Improvements Qualify?
Edited 01.27.2018 08:48AM PST
