I had about $18,000 of energy work done, heat pumps, etc that are supposed to be covered with the 30% credit. But when I put in the numbers it only shows a $300 credit.
My contractor told me it was covered at 30%
I'm confused. Where should I put in the data so I get the 30% credit?
The help says this:
Residential Clean Energy Credit The residential clean energy property credit, equals 30 percent of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines, and fuel cell property.
But the help for Energy Efficient Building Property says this:
You may also include the amounts paid for the assembly, preparation and installation of these items. The maximum dollar amount for energy-efficient building property is 10% with a credit limit up to $300.
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 01/17/2024 (subject to change)
Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...
The Form 5695 also allows credit for heat pump installation on page 3. (Part II Section B, Line 29a). Turbo Tax Premier does not allow me to claim that credit. The program needs to be updated to allow for up to 30%, not more than $2000, credit.
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...
IRS publication 5886-A confirms what your contractor told you. Turbotax hasn't updated their software to reflect 2023 tax law yet. Also see https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
I installed a super high efficiency water heater and couldn't figure out why the program kept filling in $50 for a water boiler or $300 for the efficient water heater.
This is extremely frustrating not being able to get an accurate tax amount on January 15 when the last estimated tax installment is due tomorrow.
@LShaw wrote:Turbotax hasn't updated their software to reflect 2023 tax law yet.
Unfortunately, TurboTax does not program the software according to tax law. They program it according to IRS forms and instructions. The IRS has not finalized the Instructions for 2023 for Form 5695; therefore TurboTax hasn't programmed things yet.
Good god, heaven help us. There are the times when the USTC does hold the IRS to what the form or instructions said. But it takes a win in court to get there.
@LShaw wrote:Good god, heaven help us. There are the times when the USTC does hold the IRS to what the form or instructions said. But it takes a win in court to get there.
Which is one of many reason why I don't recommend using an Intuit product. Using a GOOD tax professional (that actually KNOWS what the law says) can potentially be FAR better than using a do-it-yourself product that merely uses non-authoritive forms and instructions.