Incorrect calculation of Home energy credit for electric heat pump water heater

Gajamukh · ‎March 4, 2026

Hello.

Three weeks ago I filled out Form 5695 using the Step-by-Step method (my TurboTax Premier is desktop version) for my heat pump water heater. For an expense of $2619 and a QMID of K3A8 TurboTax calculated $796 credit, which is 30% of $2619. However, during the past weekend, TurboTax updated the software and now the credit has come down to $600!! The form 5695 that appears in TT now is wrong and does not reflect the IRS form. This was not the case three weeks ago (meaning the previous version of TT before the latest update). Please get your software engineers to go back to the drawing board and correct the form as well as the Step-by-Step questionnaire. Thanks.

CatinaT1 · ‎March 5, 2026

We're currently working on an update to form 5695. A potential calculation error has been identified on the federal return related to the Form 5695, Energy Efficient Home Improvement section, specifically the Enabling Property group.

This return can't be filed at this time due to a processing error. The fix is scheduled for March 6, 2026.

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Gajamukh · ‎March 8, 2026

Good morning on Sunday, March 8th 2026. Today I updated my TurboTax Premier software with the latest update and lo and behold, the Home Energy Credit was calculated correctly. The form 5695 was filled out correctly and I got the full 30% credit for my heat pump water heater total expenses, and indicated on line 29h of form 5695. Thanks for updating the software and correcting the previous errors.