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KELC
Level 1

Restoration of Residential Energy Credits per amended return

We amended our 2021 return because the Federal Disaster Tax Relief Act made half of our income non-taxable. We had a (form 5695) $20,747 Residential Energy Credit carryforward from 2020.  $18,602 was applied toward our tax for 2021, leaving a carryforward of only $2,145 for tax year 2022. The amended 2021 return adjusted that 2022 carryforward amount to $15,190 on line 16 of form 5695. ($5,557 was applied to the amended tax liability on our amended 2021 return.) The 1040X for 2021 shows an amount of -$13,045 on line 6b and 7b. As it is a non-refundable credit, it should be restored as an adjusted carry-forward to our 2022 taxes. The IRS can't seem to follow that logic, and has not restored the carryforward to the amended amount after an hours long phone inquiry. The correct restoration of the carryforward amount for our Residential Energy Credit will affect every single return through our 2025 return when it is filed in 2026. How can I get the IRS to correct their error and restore our credits? I used TurboTax to complete the amended return. Thank you in advance for any advice.

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