residential energy tax credit for EStar heat pumps and AC's

[cindermast]

Energy star heat pumps and AC's are listed as eligible for resi energy tax credit. However, there is no field to add it in turbo tax...only geothermal HP and gas furnace.  Please advise.

[DaveF1006]

Yes, these are tax deductible. They are reported in a category called energy-efficient building property. Here is what the screen looks like in your Turbo Tax program.

[rayser]

I have a problem where I enter the purchase price $8253.00 for my Energy star AC but turbo tax calculates my credit as "$0" when I should be getting $500.00.  Am I doing something wrong?

[DaveF1006]

@rayser.  It depends.  That $500 credit is a lifetime energy credit to be used only once.  if you have used it in the past, then you won't be able to use it again.

Also, the lifetime energy credit is a non-refundable credit. If you have no tax liability to apply this credit to, then the credit will be carried forwarded, up to 20 years. To verify if yo have tax liability to apply this credit to,;

1. Go to tax tools>tools>view my tax summary
2. Go to preview my 1040 on the left pane of the program
3. Look on line 18 of the 1040 to see if there is a an amount of tax listed there.  If not, then this may be a reason why you didn't receive the credit. 
4. If neither of the two conditions exist, check your entries very carefully to see if there was a question you may have missed or answered incorrectly.  There is very specific criteria you must meet in order to claim the credit.  

[rayser]

Aha, thank you,  I haven't entered my income yet, as I am awaiting my W2s.  That answered my concern.