In 2018, we installed a new central air conditioning unit, furnace, windows, and insulation totaling ~$9000. I inserted all of the information in my 2018 tax return, but when I filed last year - the credit had not yet been extended, so I did not receive the credit. As of January, I understand that the credit has been reinstated retroactively.
When I go to my 2018 return and try to file an amendment with the proper information, it returns a credit of $0. I am assuming this is a mistake, because when I insert the exact same information in the exact same place in the 2019 return, it comes back as a credit of $420. What am I doing wrong? Is there an issue with the 2018 software? Please advise on who I can call to get this fixed.
The Home Energy Credit is a nonrefundable credit, nonrefundable credit reduces your tax liability to 0 but won't increase your refund.
The reason why you didn't qualify for the credit in 2018 might be:
You can carry forward the unused portion of the credit, the carryforward period is 20 years.
Appreciate the response - but unfortunately, this is not correct in my situation. We paid tens of thousands in taxes in 2018, and still owed at tax time. I think it is a mistake in the software - is there someone I can talk to further about this?
It looks like the IRS has just updated the 2018 Form 5695 and is currently updating the 2018 instructions.
Once the forms are updated by the IRS, TurboTax will be able to update the 2018 software for the 5695. It may be awhile before this would be complete as TurboTax is prioritizing current year tax form.
Turbotax is aware of the problem. They are planning an update to the 2018 program for mid-March (they are prioritizing the 2019 season first.)
You can sign up to be notified when an update is ready.
Ahh - so that is probably why the software isn't working. I wondered why I could find the 2019 form online, but not the 2018. I guess that explains it.
The other thing I thought it might be: when you amend a return in TurboTax - it resets the federal and state amount(s) due to $0 - regardless of whether you got a return or paid on that years taxes. It says in the software that it is intentional, because it is taking a fresh look at what is being amended. Since the Non Business Energy Tax Credit is a credit (and not a refund), I didn't know if the software was maybe seeing that the amount due was $0 (due to the amendment), so the credit is also $0? Do you think that will be a problem when the software gets updated?
It will correctly show the new refund when it is ready. But remember to base the amended return on your original return (hopefully you saved it) and not any modifications or attempted amends you have made since then.
Couple years ago I amended to claim the mortgage insurance deduction that was retroactively restored, and the software showed my new $34 refund (I think that was the amount). Since they just retroactively restore that provision again, I am also waiting for the update so I can get my free $34. 🙂