Why do I have to wait for the energy form to file. I. Am not getting any more back

[Vanessa A]

The Home Energy Credit Section of TurboTax is not currently up to date.  A release updating this section is expected on January 31st.  Please come back after that date to enter your Insulation expenses to claim the Home improvement Energy Credit. 

This means until then, the calculation is not accurate so when the form is updated you may be getting more back. If you do not have a tax liability, you can choose to delete form 5695 by going to Tools>>Tax Tools>>Delete a Form>>Delete next to form 5695 and any worksheets referring to the credit.  However, if this was a credit that falls under the residential energy credit, even if it would not produce a refund for you this year, it can be carried forward to help in future years, but you would need to claim it this year.

The Home Improvement Energy Efficient Credit is a non-refundable credit

• Worth up to 30% of costs with a maximum credit $2,000 for
  • Air source heat pumps
  • Heat Pump Water Heaters
  • Biomass Stoves or Boilers
• Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
  • Doors, Windows and Skylights
  • Insulation
  • Natural Gas, Oil Propane Water Heaters
  • Furnaces
  • Boilers
  • Central Air Conditioners
  • Electrical Panel Upgrades
  • Home Energy Audit (up to $150)
• You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
• This credit is a use it or lose it credit.  If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.

The Residential Energy Credit is also a non-refundable credit, however this one can be carried forward to future tax years until this credit goes away which is currently set to happen in 2034

This credit is worth up to 30% of the cost of the equipment, with no maximum limit.  The items that fall into this category are as follows:

• Geothermal Heat Pumps
• Small Wind Turbines
• Solar Energy Systems
• Fuel Cells
• Battery Storage Technology

To enter these credits into TurboTax take the following steps:

• Federal
• Deductions and Credits
• I'll Choose what I work on
• Home Energy Credits which is under the "Your Home" category

[SteamTrain]

Note that the form 5695 you need, is now scheduled to be functional on/after 7Feb 2024....so come back on the 8th to enter any home energy you may be eligible for.

AND, it is important to enter it...even if no extra refund....because the credit needs to be entered, so that any unused amount carries over for possible use next year.   You need to CLAIM it in the year it is initially used in order to carry any unused amount to next year's taxes.