I'm trying to get the $2000 tax credit for the heat pump water heater. But I do not see an option for that. I looked through all the Energy saving section.

[rjs]

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@Nance59 wrote:

Thanks - we owed 700 so with the 932 "energy credit" we will get 232 refunded - I thought the energy credit would go towards what you "owe" and the rest would be carried over to next year?  Not a refund....

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@Nance59 

The amount that you owe has nothing to do with how much of a credit you get. Nonrefundable credits are applied to your total tax liability for the year, not to the amount that you owe when you file your tax return. Your tax liability is the total tax on your income for the year, before applying any credits, withholding, or other payments. On your Form 1040 the total tax liability before nonrefundable credits is on line 18. All of your nonrefundable credits are subtracted from the amount on line 18, but they can't make it less than zero. If your total nonrefundable credits are more than line 18, then you can't get all of the credits, because they can't reduce your tax liability to less than zero.

There is no carryover of unused credits. If you can't get the maximum credit this year, the rest is gone.

[GMF1]

Does anybody know when this update will finally be incorporated in the desktop version of TT Deluxe.

[DoninGA]

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@GMF1 wrote:

Does anybody know when this update will finally be incorporated in the desktop version of TT Deluxe.

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The Form 5695 for tax year 2023 was released and updated on 02/08.  Have you updated your desktop software?

Click on Online at the top of the desktop program screen.  Click on Check or Updates.

Go back through the Home Energy Credit section again to enter any costs.

[martinknutson]

I still don't see the form updated for a HPWH.  When is this now expected?

[MayaD]

To claim the credit for HPWH, 

1. Open or continue your return
2. Inside TurboTax, search for this exact phrase including the comma and spaces: 5695, residential energy credit
3. Select the Jump to link in your search results
4. At the bottom of the Energy-Saving Home Improvements screen, answer Yes, then select Continue
5. On the screen Did you have any residential energy property cost in 2023? enter Yes and continue to the screen Enter your qualified energy property cost.

The credit is 30% of the total of Heat pump, Heat Pump Water Heater and Biomass stoves and biomass boilers costs up to a maximum of $2000.