You may may receive an energy credit if you installed a qualifying energy-efficient AC system in your home. You'll enter the cost of the AC under Tell Us How Much You Paid for Energy-Saving Improvements as an Energy-Efficient Building Property. (Click the screenshot below for reference.)
To enter your energy-efficient property in TurboTax:
- Open (continue) your return in TurboTax Online.
- Click My Account (top right of your screen).
- Select Tools.
- In the pop-up window, select Topic Search.
- In the search bar, type 5695.
- In the results box, highlight 5695, residential energy credit, then click GO.
- Follow the onscreen instructions to complete this section. Be sure to click on a Learn more link if you have any questions. After you enter the cost of your AC and answer the corresponding questions, TurboTax will determine if you qualify for a Nonbusiness Energy Property Credit.
Note: If using the TurboTax CD/Download software, you'll use the Find function (instead of "My Account") to search for the topic.
The Nonbusiness Energy Property Credit has a lifetime total combined limit of $500, so if you have claimed the credit in a prior year your 2016 deduction may be reduced. See IRS Instructions for Form 5695, Residential Energy Credits for more information.