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dllccl0925
New Member

We purchased a biomass fuel pellet stove in 2020 and the program is stating we don't qualify for the tax credit. Why?

How can I enter the credit for a biomass fuel pellet stove  we purchased in 2020 and the
 tax program is stating we don't qualify for the tax credit. Why?
6 Replies
KathrynG3
Expert Alumni

We purchased a biomass fuel pellet stove in 2020 and the program is stating we don't qualify for the tax credit. Why?

The biomass fuel pellet stove would have a maximum credit of $300. It is reported on Form 5695, Residential Energy Credits. The overall lifetime credit limit is $500 for all Residential Energy Property Credits claimed since 2018. It must be installed in your principal residence. 

 

To make sure you are in the right place, be sure to enter your details by following these steps per TurboTax:

  • search for this exact phrase including the comma and spaces: 5695, residential energy credit
  • Select the Jump to link in your search results.
  • At the bottom of the Energy-Saving Home Improvements screen, answer Yes, then select Continue.
    • To delete the 5695, answer No, select Continue, and then answer Yes on the following screen to confirm the deletion.

For  more details, see: Can I claim energy-efficient appliances or energy-saving home improvements?

imaltesers
Level 2

We purchased a biomass fuel pellet stove in 2020 and the program is stating we don't qualify for the tax credit. Why?

I'm having the same issue. I have entered the dollar amount of my wood stove in the "Energy-Efficient Building Property" box under the "Energy-Saving Home Improvements" section, but at the very end the program says my home energy credit is $0. Why is this? I have no other credits to claim in the other parts of this section.

PattiF
Expert Alumni

We purchased a biomass fuel pellet stove in 2020 and the program is stating we don't qualify for the tax credit. Why?

 

Home is mine

Home in US, improvements made to main home, improvements not related to construction of main home

 

I went through the entries and was able to get a credit for this. Entries that I entered after Energy-Efficient Building Property were:

  • No to Windows in Prior Years
  • No Home Energy Credits in Prior Years
  • No Additional Energy Efficient Improvements
  • No Energy Credit Carry Forward
  • Your Home Energy Credit $300

There is a lifetime credit of $500 since 2018.

 

 

clarkwd
Level 2

We purchased a biomass fuel pellet stove in 2020 and the program is stating we don't qualify for the tax credit. Why?

https://www.irs.gov/pub/irs-pdf/i5695.pdf

 

Pick Forms from the top menu

Open Form

Search for 5695

Open form 5695

Go to line 22A and enter what you paid for the energy efficient property or qualifying appliance

Close the form

Go back to the interview.

gisgirl9
New Member

We purchased a biomass fuel pellet stove in 2020 and the program is stating we don't qualify for the tax credit. Why?

I am trying to figure this out too. I have purchased the desktop version of 2021TurboTax Premier for Mac.

The woodstove I purchased is more than 75% efficient, and qualifies for a tax credit of 26%, (with no cap or lifetime limit) for year 2021. 

This should be entered on line 5 on IRS form 5695.

How is this achieved in 2021 TurboTax?

 

Thanks very much.

SteamTrain
Level 15

We purchased a biomass fuel pellet stove in 2020 and the program is stating we don't qualify for the tax credit. Why?

@gisgirl9 

 

You are posting on to last year's Q&A....   

 

The Biomass Stove/heater deduction has moved to a different place in the new 2021 form 5695......as such, entry of your Biomass stuff in the software is not expected to be "properly" available until AFTER 3 February.

__________________________

Please go back thru those Home Energy Credits questions, and remove any $$ you entered for that item....then come back on 4 February, or later,  and go thru the Home Energy Credits questions again.  It should have moved into the area with the Solar credits, but I can't know ahead of time exactly where they will put it in the Home Energy Credits interview, once the section is properly updated. 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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