Residential Energy Credit

[DfrJr]

I checked the IRS website today, 8 Feb 2020. Part II of Form 5695 (2018) still shows "Nonbusiness Energy Property Credit (Reserved for Future Use)".   Once the IRS releases it, then we can hound our tax software provider about the update.    Glad to see this forum where at least this problem is acknowledged. Googling could not find anywhere else other then the general rules, but not how to get it when the forms are not yet available. I emailed the IRS with this question yesterday and got nowwhere.

[hreif1957]

In looking to get an energy credit for 2018, I cleared the cache on my PC. When clicking on "Install Updates", TurboTax says my 2018 version is up-to-date. The last date my version was updated was on 1/11/2020 prior to the updated 5695 form the IRS updated for the energy credit. I was planning to amend my return to get the credit in the 2018 TurboTax version but the new update for 5695 is not there. Has anyone verified if they have received and installed the updated 5695 form for the 2018 version?

[KrisD15]

That has not been updated yet. 

The updates for extended credits are just being completed for the 2019 tax year software and prior years are next. 

[DfrJr]

Thanks Kris,

Is there any kind of timeframe from the IRS when they will complete the Part II of 2018 Form 5695?

Per LIne 18 of IRS instructions for 2019 Form 5695, Part II: "If you are claiming the nonbusiness energy property credit on both a 2018 and a 2019 Form 5695, complete your 2018 Form first"

If no time frame is available, seems we should file the 2019 taxes now, and do amendments to 2018, then 2019, whenever the 2018 form part II is completed. What a debacle!

[DfrJr]

I used another tax software product for 2018 and found out they are not planning to update their 2018 Federal download product for 2018 Form 5695, Part II nonbusiness portion. I am not sure if Turbotax plans to or already has updated their 2018 product either. If they have, please reply, I might consider switching back!

What to do?  Go to the IRS website, download 2018 Form 5695, along with instructions, that were revised in Feb 2020 by the IRS that are now including all of Part II. Also download Form 1040-X (Jan 2020) and instructions for amending a previous year tax return.  Per IRS 1040-X Instructions - the amended form can not be done online - They must be mailed in. So I am planning to just fill in the required info, print out forms, and mail them in. 

[hreif1957]

No. The last updates I see for TurboTax 2018 were 1/1/2020 prior to extending the tax nonbusiness energy credits. It would be nice if TurboTax would come out with information when (and if) they will provide updates.

[DoninGA]

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@hreif1957 wrote:

No. The last updates I see for TurboTax 2018 were 1/1/2020 prior to extending the tax nonbusiness energy credits. It would be nice if TurboTax would come out with information when (and if) they will provide updates.

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See this TurboTax support FAQ for information on the 2018 software updates due to the Tax Extenders authorized by Congress - https://ttlc.intuit.com/community/tax-topics/help/2018-extenders-passed-under-taxpayer-certainty-and...

[shockley1947]

Filed our taxes March 30, 2020.  But did not print off until yesterday.  I realized that the residential energy credit for skylight did not appear on Form 5695 or on Schedule 3.

Did we do something wrong?  Must we do an amended

return?  Thank you for your assistance with this

[DGK2]

This happened to me also.  I called Turbo Tax Support and it was explained to me that the Residential Energy Credit is the type of credit which is deducted from any tax that you may end up owing when your tax return is completed.  It is not a refundable credit which you would receive refunded to you even if you owe no income tax.  In my case, since I didn't end up owing any income tax, the credit really didn't apply and therefore it didn't end up showing up on my tax return.  I would have preferred seeing that the form was created in any case just so I would know that the system didn't just overlook, or not process, the fact that I had entered information that might have entitled me to the credit.  But that is not how Turbo Tax is designed unfortunately.  So perhaps this could be a similar situation for you.  If you do not owe any income tax when your tax return is completed, you would not see that form for the Residential Energy Credit.  At least this is what was explained to me by the Support person I talked to.

[VictoriaD75]

As suggested, you may not have had a tax liability to offset. Refer to line 16 of your Form 1040. This would indicate your final tax liability.

Additionally, the residential energy credit is very limited. If you took the credit in prior tax years, you may have already arrived at the maximum credit amount. 

You can claim a tax credit for 10% of the cost of qualified energy efficiency improvements and 100% of residential energy property costs. This credit is worth a maximum of $500 for all years combined, from 2006 to its expiration.  Of that combined $500 limit,

• A maximum of $200 can be for windows.
• The maximum tax credit for a furnace circulating fan is $50.
• The maximum credit for a furnace or boiler is $150.
• The maximum credit for any other single residential energy property cost is $300.

You can try amending the return to see if including this information changes the outcome.

Energy Tax Credit

[mdipierro]

Out of curiosity, did your tax credit definitely show up as a credit?  Or a refund?  Mine is showing as a refund and it is clearly a tax credit.  I called TT support and she acknowledged it was incorrectly showing as a refund, but there was nothing she could do.  Um, your system is incorrect and there is nothing you can do?  I asked to speak with someone else (a tech person, a programmer or someone similar), but the answer was no.  I'm just curious if anyone else has run into this situation.  Thanks.

[KrisD15]

What line on the 1040 did it show up on? 

[mdipierro]

Schedule 3, Part 1, Line 5.

[ThomasM125]

The amount on line 5 of schedule 3 should flow to line 13(b) on your form 1040. That is not what is happening?

[shockley1947]

Did not show up at all when return was printed.  It was definitely entered on some other form after finding that skylights were allowed for energy credit.  Have no idea where this item went.  Since we received a small refund did that push this credit into next year's return?