TurboTax rejecting valid QMID K3A8 for Rheem heat pump water heater

[skymasterson]

I installed a Rheem XE65T10H45U1 heat pump water heater in 2025 at a total cost of $4,064.62 (equipment + installation + electrical work).

Problem:

TurboTax is only giving me a $64 energy credit instead of the $1,219 maximum for heat pump water heaters.

What I've verified:

- Model XE65T10H45U1 is on Rheem's official qualifying models list
- Rheem's QMID is K3A8 (confirmed on Rheem's website and manufacturer certification)
- When I enter the full cost ($4,064.62 or even just $3,852), the credit calculates as $0
- When I separate out only the electrical work ($212.50), it correctly calculates 30% = $64

Expected: 30% of $4,064.62 = $1,219 credit
Actual: Only $64 credit (just the electrical work)

This appears to be a TurboTax bug.

Note: When I initially started my return, I was given the full amount. I logged in 2 weeks later after receiving all of my forms and now I see only a $64 credit. Something broke in the last few weeks

Has anyone else experienced this? Is there a workaround or is this a known bug that will be fixed in an update?

[cf4man]

I have the exact same problem with form 5695 calculating the 30% of the cost of the water heater, and it does not include that in line 29h.   My workaround, until TTAX fixes this, is that I entered the cost of the HPWH under the Heat Pump section (line 29a), and the calculation gets done properly.   If they do not get this fixed, I think it is justified because a HPWH is just another form of a Heat Pump.  But I am waiting till April 15 to file, hoping that this will get fixed.

[CatinaT1]

We're currently working on an update to form 5695. A potential calculation error has been identified on the federal return related to the Form 5695, Energy Efficient Home Improvement section, specifically the Enabling Property group.

This return can't be filed at this time due to a processing error. The fix is scheduled for March 6, 2026.