Home Energy Credit on Heatpump water heater

Forum|Forum|1 year ago
March 30, 2025
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Hi, I entered all the information needed for the Home Energy Credit on the Heatpump water heater but for some reason it does not show up as a federal credit. Can someone explain to me why it's not showing up?

Cheers,

molly

MindyB

If you have not completed the rest of your return, or have no income tax liability this may be why the credit is not appearing. Self-employment tax is not included as income tax for purposes of this credit. The energy credit is non-refundable, so if you don't have enough income tax being computed, the credit won't be generated.

If you have entered all your income, and still are not getting a credit, be sure you have entered your information in the correct place in TurboTax Online:

1. Upon opening TurboTax, choose Deductions & Credits

2. Locate Your Home

3. Start/Revisit Home Energy Credits

4. On the Energy Efficient Home Improvements screen, select Yes then Continue.

5. Answer the next few questions until you get to Did you have any of these residential energy property costs in 2024? Heat pumps are listed here. Select Yes and continue.

6. Make sure you enter the total cost and answer the questions about ownership and location of the home.

See this article for a summary of the amounts available: Energy Efficient Home Improvement Credit (EEHIC)

mmleung13Author

Thank you Mindy,

I appreciate the prompt response. I actually did everything you listed and the federal tax credit shows up on the "Deductions & Credits" tab but it doesn't show up in the "Federal Review" page under the "Federal Credits we Found for you" field.

Please help.

Vanessa A

Are you using the online version or the desktop version?

Look at your forms, this is what is important. Go to Schedule 3 line 5b, this will show you your home improvement energy credit. What is important is what is on the form. Also, you can look for form 5695. This will also show you that you have the credit on your form 1040 on line 20. If it is there, then you have the credit and you can ignore the federal credits we found for you page.

Remember, this is a non-refundable credit, so if you do not have a tax liability, you will not get the credit.

If you are using the desktop version, you can simply switch to forms mode to check this out. If you are using the online version, you can follow the instructions below to see your form 1040.

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)
Select Tax Tools
On the drop-down select Tools
On the pop-up menu titled “Tools Center”, select View Tax Summary
On the left sidebar, select Preview my 1040