Energy Credit 25C

[lmcqueenl15]

Hello,

I entered expenses of $1700 in the are for Home Energy Credits, answered all questions correctly, yet it says that there will be a 0$ tax credit. ??

[Vanessa A]

 Not everyone qualifies for the full credit or any of the credit even if they have made qualifying improvements.  If it is saying your credit is $0 for Home Improvement Energy Efficient Credit, it is likely because you only have a $0 tax liability. This credit is a nonrefundable credit. A nonrefundable credit is not able to be fully used when you have no tax liability or less liability than your credit.   Look at line 16 on your 1040, then also look at line 24. If the amount on line 16 is less than $1,200, then you are not be eligible for the full credit.  Then, if you have other credits, that may also reduce the tax liability, this would also reduce the amount of the credit you receive.  Then look at line 24.  If this line is $0, then your credit was limited by your tax liability.