Pellet stove credit where do I enter it

[LindaA · Accepted solution]

Your energy-efficient pellet stove may qualify for an energy credit. You'll enter the cost of the pellet stove under Tell Us How Much You Paid for Energy-Saving Improvements as an Energy-Efficient Building Property. (Click the screenshot below for reference.)

To enter your energy-efficient property in TurboTax:

• Open (continue) your return in TurboTax Online. (If your return isn't open, you'll need to sign in, click Take me to my return, then click Pick up where I left off.)
• 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. Be sure to click the Learn more links if you have any questions. 
• After you enter the cost of your pellet stove and answer the corresponding questions, TurboTax will determine if you qualify for an energy 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 Credit 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.

Can I claim energy-saving home improvements? https://ttlc.intuit.com/replies/3300639

[Linda Ch]

When following these instructions, there is no place that discusses pellet stoves

[Vanessa A]

The credit for pellet stoves is part of the Residential Energy Credit or Home Energy Credit. This is found under deductions and credits>>Your Home. 

TurboTax does not specifically list pellet stoves of Biomass Stoves, however, this is where the credit is to be entered.

[hiramcoach]

The instructions below gave me a 30% tax credit, but the "Wood and Pellet Heater Investment Tax Credit" should only be for 26% in 2022.  It then drops to 22% in 2023.  How do I claim the credit for only the allowed percentage of 26% (not 30%)?

[JohnB5677]

For items placed in service in 2022 the credit is 30% of cost.

The credit applies for property placed in service after December 31, 2021, and before January 1, 2033. 

• The credit percentage rate phases down to 26 percent for property placed in service in 2033, 
• 22 percent for property placed in service in 2034, and 
• no credit is available for property placed in service after December 31, 2034.

Heat pumps and biomass stoves and biomass boilers (30% of costs, including labor) satisfying the energy efficiency requirements in Q1 under the Energy Efficiency Requirements section:

• electric or natural gas heat pump water heaters; 
• electric or natural gas heat pumps; and 
• biomass stoves and biomass boilers.

IRS Frequently asked questions about energy efficient home improvements and residential clean energy...

see the bottom of the second page.

@hiramcoach 

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