If you have a qualifying heat pump, enter it as an Energy-Efficient Building Property under Tell Us How Much You Paid for Energy-Saving Improvements. (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. After you enter the cost of your heat pump 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 Crredit 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.
The FAQ below provides links to sites that will help you determine if your energy-efficient property qualifies for a tax credit.
Can I claim energy-saving home improvements? https://ttlc.intuit.com/replies/3300639
