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energy credit shows on form 5695 but not on income summary

Form 5695 shows a $2000 home energy credit on line 32. On the Review of our numbers, only a $56 foreign tax credit is shown on the Federal Tax Credits We Found for You Line.

Where is the home energy credit? Is it a deduction rather than a credit?

Thanks.

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1 Reply
MindyB
Expert Alumni

energy credit shows on form 5695 but not on income summary

The energy credit on Form 5695 is indeed a credit, not a deduction.  It will appear on Schedule 3, Line 5b and be carried to 1040 Line 20.  The credit could be limited if you don't have enough tax to absorb it (it's nonrefundable), but that calculation occurs on the Form 5695 itself on the limit smart worksheet above line 31, so you should be getting the full credit.

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