Form 5695 - error again

[jrh4850]

After applying the latest update today, the max credit for a heat pump on form 5695 is back to $500. My credit was $2000 after the last update. Any idea if TT knows about this problem again and when it might be resolved? Thanks.

[jrh4850]

Update. This bug only seems to happen if using "married filing separately". If filed jointly the full $2000 credit is applied. Thoughts?

[AmyC]

The form is being updated.   Please sign up for notifications.  Use this link to sign up for notifications for Form 5695.   Sign up for Form 5695 notifications.    

[jrh4850]

Received and email from TT that this has been resolved. The update did not fix this issue.

[DawnC]

If you are using the desktop program, make sure the update has applied and step back through the interview for energy credits section in TurboTax.   And let us know if the MFS credit is still different from the MFJ credit.   @jrh4850 

There are 2 different residential energy credits available, depending on what type of heat pump you installed.  

The Residential Energy Efficient Product (RCE) credit, this credit is available for qualified equipment placed in homes before 2035, including:

• Solar electric equipment
• Solar water heating equipment
• Fuel cell equipment (principal residence only and limited to $500 per 0.5 kilowatt)
• Small wind energy equipment
• Geothermal heat pump equipment
• Battery storage technology equipment (beginning in 2023)

Under a different $2,000 per year limit, the (EEHIC) credit covers the equipment cost and installation of new energy-intensive appliances like heat pumps and heat pump water heaters, biomass stoves and boilers.

[jrh4850]

I have done this multiple times. The bug only affects "married filing separately". If filed jointly the 30% credit works for a electric heat pump. If filing "separately" the max credit is $500.

[DawnC]

I would like to take a deeper look at this. However, I need a diagnostic file, which is a copy of your tax return that has all of your personal information removed.  You can send one to us by following the directions below:

TurboTax Online:
 

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen. 
3. A drop-down will appear. Select Tools  
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in your reply.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select Send Tax File to Agent *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number that was generated in the response.  

* If using a MAC, go to the menu at the top of the screen, select Help, then, Send Tax File to Agent.

[jrh4850]

1200283

[DawnC]

If you shared the costs of the heat pump for your home with a co-owner, other than your spouse, you will need to wait for the Joint Occupant form to be updated to reflect the 2023 credit amount.   The total costs paid by all owners is needed to calculate your portion of the credit.    Sign up for Form 5695 notifications.    

If you did not share the costs of the heat pump with any co-owner, then you do not need the Joint Occupant form, so you can:

1. Uncheck the box at the top of Form 5695 and
2. Delete the Joint Occupant form.  

This will put the credit (with 2023 limits) on your return, and you can file.   The Joint Occupant page has the issue, but you only need it if you shared the costs of the heat pump with other co-owner(s).   The box at the top of Form 5695 is what triggers the Joint Occupant form.   If you delete while the checkmark is still there, it will regenerate.   

You can delete the checkmark in Forms Mode, but if you are using TurboTax Online, you need to return to the interview (it's the first question) and answer NO.   

From the Instructions for Form 5695:  If you owned your home jointly with someone other than your spouse, each owner must complete their own Form 5695 to figure the credit.     

If you paid the full amount, the multiplier is 1, so no allocation is needed.   

The credit limit for heat pumps still needs to be updated on the Joint Occupant form, but if you don't need it, you can delete it and file your tax return.   

If the box at the top of Form 5695 (Check this box if you occupied your home jointly and shared the cost of any qualifying property or Improvements (not applicable if the other person is your spouse, and you file jointly))  is checked, the Joint Occupant form is required, and you will need to wait until it is updated.   Sign up for notification here.