Line 29 on Form 5695 - New Heat Pump

[bear52]

I can't type in a dollar value on line 29 for the cost of my new heat pump. I  have answered all of the pertinent questions, but to no avail. Turbo Tax doesn't tell me what I'm doing wrong, nor direct me to fill out another field or form.

[DoninGA · Accepted solution]

The IRS has not yet finalized the 2023 Form 5695, Residential Energy Credits.

The Form 5695 is scheduled to be available in TurboTax on 01/10/2024.

Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

To enter Home Energy Credits -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credit
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits, click the start or update button

Qualified energy property is any of the following.
• Certain electric heat pump water heaters; electric heat pumps; central air conditioners; and natural gas, propane, or oil water heaters.

Enter the cost in the box labeled Energy-Efficient Building Property.

[bear52]

Donin,

Thank you! I was able to put in a value with your method (going directly to the form didn't work for me as I stated earlier). However, after going thru your method, Turbo Tax said " We can't get you your credit". Do you believe it is because of your statement "The IRS has not yet finalized the form" ?? Hopefully, that's the case.

Thank you again..

B

[DoninGA]

@bear52 Correct.  Since the 2023 TurboTax software has not been updated with the 2023 Form 5695 that would be the reason you are seeing that message.  Would not be concerned until after the Form 5695 becomes available.

[SteamTrain]

Even when the form 5695 is final....make sure you've entered ALL your income first.

There is no credit to be used for 2023 if you don't have a tax liability to apply the credit to. 

[bear52]

Thank you so much for the info. Was driving me nuts. Wouldn't you think that Turbo Tax would pop up a message indicating all the above? 

[babyrd55]

Thanks for the information ... but ☹️. This form is critical to tax planning that I need to do before the last week of the year (to recognize income) and for the 1/15/24 estimate. With the obvious understanding that Intuit can't do anything if they don't have a form to work with, I do wish they would do everything they can to get it available sooner. Unfortunately the changes in the program from 2022 to 2023 are immense, and the current (wrong) version of the form is trying to lock me out of any credit because a few years ago we installed an on-demand water heater that used up the old, small, now obsolete lifetime credit.

[bear52]

I believe the "lifetime credit" restriction is going to be tossed out the window. From what I read/understand, you'll be able to claim one every year with no restrictions. I'm not the expert, but it's what I understand from reading various sources.

[babyrd55]

Same understanding here, thanks. That's part of the issue: Even though the form says 2023, its still the 2022 form and no one has yet even overridden the old lifetime credit so no credit at all is falling through to the tax computations (since I used the old credit a few years ago). Looks like those of us who are using it are going to have to make manual calculations in the interim.

[mpmaxwell2]

I believe that due to the $6,915 cost of my heat pump, I should get a $2,000 tax credit so I will just have to go with that as entering the $6,915 into Energy-Efficient Building Property only gave me a $300 credit. 

[bear52]

I agree you should get the $2000.00. Are you saying you were able to input data into the form? From my understanding, it's still not been released. Also, as SteamTrain said in the above post, do not fill out the form until you've input ALL of your income. I don't even have any W-2's or 1099's yet, so I guess I'm a little confused on how you're doing your calculations already. 

[mpmaxwell2]

Thank you for your input! .Even though the form may not be finalized, everything I have read indicates the calculation is correct

I estimated my taxes using estimated income and the standard deduction and they will be enough to use the full $2,000 credit.

[CW1917]

Looks like the update is still not in Turbo Tax.

[DoninGA]

---

@CW1917 wrote:

Looks like the update is still not in Turbo Tax.

---

The IRS Form 5695 Residential Energy Credits for tax year 2023 has not been finalized in the TurboTax program.

The Form 5695 for tax year 2023 is scheduled to be available on 01/24/2024 (subject to change)

Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

[Solo401krookie]

Availability now updated to 1/24/2024