Form 5695 energy tax credit. My heat pump water heater should have a 30% or cap of $2000. Total cost $3,863.00 X .30 = $1,158.90. Turbo tax is only giving me $600

[LindaS5247 · Accepted solution]

A heat pump water heater would be eligible for a 30% tax credit up to $2,000, and not $600. If your TurboTax program is only giving you $600, you may have entered it under "water heaters" which are subject to to a $600 cap.
 

To check this, you can get back to your TurboTax screens for the energy tax credit as follows:

1. Click on Search in the top right of your TurboTax screen
2. Type (exactly) 5695, residential energy credit in the search box
3. Click on the link Jump to 5695, residential energy credit
4. This will take you to the input screen in TurboTax to enter your information regarding your heat pump, water heater
5. Continue through your TurboTax screens to make sure you have answered everything correctly
6. Make sure that you entered your information on the screen that says Enter your qualified energy property costs under heat pump water heaters and not water heaters

Make sure your QMID that you entered is correct. The IRS requires a Qualified Manufacturer Identification Number (QMID) for heat pumps. If this is missing, TurboTax may default to a lower credit amount or disqualify it.

Click here for Where do I enter qualified energy-saving improvements?

Click here for Energy Efficient Home Improvement Credit

Click here for 2024-2025 Energy Tax Credit: Which Home Improvements Qualify?

Please return to Community if you have any additional information or questions and we would be happy to help.