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jdjrlester4
New Member

Under Home improvements, we purchased a new AC system does that qualify for the insulation material or system Deduction/Credit?

 
1 Reply
LindaA
Level 10

Under Home improvements, we purchased a new AC system does that qualify for the insulation material or system Deduction/Credit?

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.


Can I claim energy-efficient appliances or energy-saving home improvements?  https://ttlc.intuit.com/replies/3300639
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