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csher
New Member

We installed a new high efficiency furnace and central air and were told we would get a $525 tax break. Where do I enter that information?

 
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2 Replies
MinhT1
Expert Alumni

We installed a new high efficiency furnace and central air and were told we would get a $525 tax break. Where do I enter that information?

To claim the credit, please follow these steps:

  1. In TurboTax, open your tax return
  2. Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
  3. Scroll down and locate the section Your Home and click on Show more
  4. Click Start next to Home Energy Credits
  5. Follow the interview to enter your information.
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We installed a new high efficiency furnace and central air and were told we would get a $525 tax break. Where do I enter that information?

Unfortunately your numbers are wrong.  The maximum credit in your case is $500 or less.  

 

The credit for an efficient air con is 10% of the cost up to $300.

The credit for an efficient furnace is 10% of the cost up to $150. 

There is a credit for "Advanced main air circulating fan used in a natural gas, propane, or oil furnace" which is 10% of the cost up to $50.

 

So your credit could be $500, if your invoice lists the costs of the a/c, furnace and circulating fan separately.  If your system only lists one overall price, you can only claim the $300 credit.  Ask your installer for a written cost breakdown if needed.

 

And finally there is a $500 lifetime cap on all credits for energy efficient improvements like doors, windows, insulation and furnace and a/c.  If you claimed the credit in the past, your credit now will be reduced or eliminated. 

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