TurboTax Error: Form 5695 shows $0 credit for Heat Pump WH (QMID: K3A8). I have $5k tax liability and it's my primary home. Software isn't calculating the 30% credit.

[Houseonarock]

Issue: TurboTax is incorrectly calculating a $0 credit for a qualified Heat Pump Water Heater (Rheem Model #XE80T10H45U1) despite meeting all IRS requirements for the 2025 tax year. Technical Details entered in the workflow: Item: Heat Pump Water Heater (30% credit, $2,000 cap). Qualified Manufacturer ID (QMID): K3A8 (Validated for Rheem). Energy Star Status: Verified ENERGY STAR Unique ID 3554247. Property Type: Primary Residence (Owner-occupied). Tax Liability: My Form 1040 shows a total tax liability of $5,072. The Error: The software summary states: "Based on what you've entered so far, we can't get you the home energy credit." Troubleshooting already performed: Verified that Line 17a (Main Home) is marked "Yes." Deleted and re-added Form 5695 multiple times. Confirmed that I am not exceeding the $2,000 annual limit for heat pump credits. Confirmed that my tax liability ($5,072) is sufficient to absorb the credit. Request: Please investigate if there is a software bug preventing Form 5695, Part II from calculating correctly, or if there is a pending form update required to enable the 2025 Energy Efficient Home Improvement Credit logic.

[djb5254]

Yes I posted in here on another post. I filed a return on 2/24 that I had a biomass stove credit on, but then I received a corrected 1099 in the mail and had to amend my return in TurboTax. TurboTax did a software update on 2/27. When I went to file an amendment yesterday 2/28, TurboTax was no longer calculating my biomass stove credit. I believe there is another software update on 3/6 coming out and am hoping it corrects this issue. 

[amgrobman]

What worked for me thus far with the same issue after the update is delete 5695, quit TT, restart the computer, open TT and complete the form again using Easy Step updating the Residential Energy Credit.  I checked again this morning and the correct amount is still there without errors.  However, I am not risking submitting my return for awhile and will see if things stay stable with the next few updates.  I have Premier Desktop and it is on a Mac but issue sure sounds the same as what I had.  Someone else tried this and did not work for them so ?

[djb5254]

Thanks just tried your suggestion but it didn’t work

[user17723970654]

I have the same issue with at $10,400 biomass wood stove. It's showing $0 credit and have a five digit tax liability so that $2K credit would come in very handy. I spoke to customer service and sounds like they're aware there's a bug in the system (and have been aware since end of last week) and they're hoping to push out a fix in the next few days.

[DA_2000]

same issue for me,  is there a way to contact turbotax directly on this?

[fataxkc]

I have the same issue for Heat Pump Hybrid Water Heater from Rheem (K3A8) not getting added to credits.  Note that I also have 30% energy credits coming from Battery Storage which can be significant amount.  However I have tried several times by deleting the form 5695 and starting over with Home Energy Credits section trying different combinations; whether I include the Battery Storage or not, the credit for Heat Pump Water Heater remains zero.

[fataxkc]

I tried this again today 3/6 ... the Heat pump Water Heater credit is now added to total of Home Energy credits.  Looks like its fixed.