Form 5695 - heat pump, AC and Furnace

[mccabem]

With the inflation reduction act there were changes for 2023 with form 5695.  where in the step by step process do you enter costs for a heat pump, AC  and Furnace.  It is not clear at all.  When looking at the actual 5695 form, the fields are there but you cannot directly edit.  Please advise where to enter the deduction for home energy efficiency for costs associated with a heat pump, AC and natural gas furnace

[rjs]

The Step-by-Step interview for Form 5695 has not yet been updated for 2023. It is tentatively expected to be available January 17. That date could change.

[mccabem]

thank you for the information

[DawnC]

When the form is ready, and you need to get back to that section, you can search for Residential Energy Credit from the search bar (magnifying glass).   How Do I Add or Remove Form 5695?  

[Penzky]

As of Feb. 2, form 5695 still not on TurboTax.  But it is available through IRS.  That doesn't help for efiling purposes.

[DoninGA]

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@Penzky wrote:

As of Feb. 2, form 5695 still not on TurboTax.  But it is available through IRS.  That doesn't help for efiling purposes.

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

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

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

The IRS Just finalized the Form 5695 instructions for tax year 2023 on 01/31/2024.  It will take awhile for the updated instructions to be complied and included in the TurboTax software.

[VSh]

Turbo Tax Team:

When is the expected date for updated form 5695 in Turbo Tax 2023 so I can take credit for electric heat pump water heater and electric heat pump air-conditioner? Thanks.

[DoninGA]

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@VSh wrote:

Turbo Tax Team:

When is the expected date for updated form 5695 in Turbo Tax 2023 so I can take credit for electric heat pump water heater and electric heat pump air-conditioner? Thanks.

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

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

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

[GBPackersFan]

The form is out but it appears they missed the furnace option?  If I use heat pump it creates the wrong credit (max $600..).  Anyone else agree? 

[Vanessa A]

Depending on what type of furnace you purchased, the credit may be limited to $600.  Regular energy efficient furnaces and air conditioners that are not heat pump, or biomass fuel sources, only qualify for the $600.  These will go under in the box next to Water Boilers. 

If you purchased and installed a Biomass stove or boiler or a heat pump, then these are worth up to $2,000.  If you entered it in the wrong box, you can simply delete the entry and enter it in the correct spot. 

[GBPackersFan]

correct but there is NO entry on the just released form for a furnace, only air conditioner, please help where do I input the furnace there is only heat pump 

[GBPackersFan]

[DoninGA]

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@GBPackersFan wrote:

correct but there is NO entry on the just released form for a furnace, only air conditioner, please help where do I input the furnace there is only heat pump 

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Enter the cost of the furnace in the box labeled Water boilers.  The label for that needs to be changed to Furnaces instead of water boilers.  But that is the correct location to enter the furnace cost as it will flow to the Form 5695 Line 24a for Enter the cost of natural gas, propane, or oil furnace or hot water boilers

[Vanessa A]

The water boiler box covers the furnace. 

[GBPackersFan]

thanks for the assist!