Home residential energy credit issues

[SKBTexas]

We made several home upgrades that qualify for the Inflation Reduction Act tax credits, but my TurboTax package is having issues with them. It won't take me to Form 5695, Part II Energy Efficient Home Improvement Credit using the Q&A format. So I went to the form itself. Get the message we qualify for $1,200 credit, but then it's not applied to our tax due and no Form 1040 Schedule 3 showing the credit is to be found. What's up here?!? This is the same product I bought last year, but seems to be offering less.

[rjs]

Form 5695 has not yet been updated for 2023. The form and the interview are tentatively expected to be available January 25. (That date could change.) Try again after January 25.

[SKBTexas]

Thank you! I will try to be more patient!

[anitaf]

Is Form 5695 ever going to be corrected in TurboTax?  The IRS has had the updated form on their website for weeks.  Yet the Turbotax form still has an erroneous "Smart Worksheet" for Line 18 that imposes a lifetime limit, which is NOT the law for this year.  And Line 18 on the form is correctly the line for Insulation or air sealing material or system.  So TurboTax has the updated form, but has not updated its worksheets and is erroneously denying credits.

[DaveF1006]

The form will not be released until 2/07.  Check back after that time and once the form is updated, you should be able to see the difference.

@anitaf 

[dcp69]

lies! It's the 7th now and still no updates! paid $70 for this worthless software!

[LeticiaF1]

Updates are still being applied to the software. We recommend updating or logging back into your software tomorrow and then proceeding with filing your tax return.

@dcp69 

[JRB46W]

It's now 2/16 and Form 5695 on TT still indicates that there is no credit for 2023 because of credits taken in previous years. The list of available forms indicates that 5695 is available, but it is not current. Please make the updated form available and accurate for 2023 tax filing.

[DoninGA]

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@JRB46W wrote:

It's now 2/16 and Form 5695 on TT still indicates that there is no credit for 2023 because of credits taken in previous years. The list of available forms indicates that 5695 is available, but it is not current. Please make the updated form available and accurate for 2023 tax filing.

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Did you update your TurboTax desktop software to the latest release?

Click on Online at the top of the desktop program screen.  Click on Check for Updates

[JRB46W]

I am using the online version that I purchased this year. The form is not updated in the list of forms. Still waiting on 2/28!

[DoninGA]

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@JRB46W wrote:

I am using the online version that I purchased this year. The form is not updated in the list of forms. Still waiting on 2/28!

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The Form 5695 was released on 02/08.  There are some issues if you are sharing an ownership of the residence where the energy efficient improvement were made, but if you are not sharing ownership or are filing as Married Filing Jointly you should be able to use the form for the energy credit.

To enter Home Energy Credits -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credit
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits, click the start or update button

[JRB46W]

I just did what you recommended for the 2nd time today, and once again the old form was used that considered prior year credit, thus giving me $0 energy credit. The IRS instructions state "The credit has no lifetime dollar limit." Is there another way to get the updated form on TurboTax? This is frustrating when the form is available on the IRS site, but Turbo Tax isn't up to date and doesn't warn users that they have the incorrect form on their website. How many people have missed out on substantial credits because they trusted Turbo Tax?

[DoninGA]

@JRB46W Not sure what your issue is with the energy credit.  Did you have a credit carryover from 2022?  If so, that carryover credit Must be used on the 2023 tax return.  If you have 0 tax liability the credit will carryover to the next tax year and so on until the credit is used or until 2034 whichever occurs first.

[JRB46W]

My issue is that the form on Turbo Tax is incorrect. It does not match the form I obtained from the IRS. It includes a lifetime limitation on energy credit that is no longer in effect. If you compare the form on TT with the form5695 directly from the IRS you will see the differences, especially on page 2. I will be missing a $600 credit if I file with TT's 5695. Do you work for Turbo Tax?

[DoninGA]

The Form 5695 for tax year 2023 in the TurboTax program is exactly the same as the Form 5695 for tax year 2023 as posted on the IRS website.

On the 5695 in TurboTax there is no mention of the lifetime credit as was on the 2022 Form 5695.  In the interview section when entering the Energy Efficient Home Improvement Credit there is no mention of the lifetime credit.

I have completed the Form 5695 for my own tax return, added an HVAC system and received the $600 credit on my tax return.

Can you post a screenshot of what you are seeing in the TurboTax program that is causing an issue?

Here is a screenshot from TurboTax for the Qualified Energy Property Costs -

And a screenshot for the Energy Saving Improvements -