TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

Solved

How can I claim residential energy credits for electric heat pumps and heat pump water heaters?

Forum|Forum|2 years ago
January 19, 2024
9 replies
0 views

I don't see a place to claim these in the 'Home Energy Credits' section of 'Deductions & Credits'. It corresponds to lines 29a and 29b in Form 5695 Part II, Section B (Residential Energy Property Expenditures). The closest line is 'Energy-Efficient Building Property', but this is capped at 10% or $300. There should be a separate credit of 30% or $2,000 for heat pumps.

TurboTax Basic Windows

Best answer by DoninGA

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 01/31/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

DoninGAAnswer

Employee

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 01/31/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

lreimer74

I asked a similar question late last year ... was told it would be implemented in early Jan and now its Jan 31 ... the IRS form is updated why not TurboTax?

DoninGA

Employee

@lreimer74 wrote:

I asked a similar question late last year ... was told it would be implemented in early Jan and now its Jan 31 ... the IRS form is updated why not TurboTax?

The IRS instructions for Form 5695 have not been updated for tax year 2023. Until the IRS has formalized the instructions, TurboTax cannot update their program.

IRS Form 5695 (2022) - https://www.irs.gov/pub/irs-pdf/i5695.pdf

rob2266

The form 5695 looks to be correct but the input questions need to be updated to include the additional energy efficient products. Is that part of the software update??

DoninGA

Employee

@rob2266 wrote:

The form 5695 looks to be correct but the input questions need to be updated to include the additional energy efficient products. Is that part of the software update??

Yes, it is.

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

timbo1599

Following. I am having the same issue.

Colorado Kid

Starting with Tax Year 2023, the IRS made major changes to the Energy Efficient credits. I noticed when I was doing my TurboTax on 12/30/24 that TurboTax still showed the info for the program that ended on 12/31/22. You can look up the changes on IRS.gov. It seems that the TurboTax program has not been updated to reflect the TaxYear 2023 changes.

POakleaf

As of February 2, the heat pump credit is not handled correctly in Turbo Tax desktop. But I see it in IRS form 5695 line 29.

DoninGA

Employee

@POakleaf wrote:

As of February 2, the heat pump credit is not handled correctly in Turbo Tax desktop. But I see it in IRS form 5695 line 29.

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

clamatoman

Updated to be available on 2-7-2024. Try back on/after 2-7.

gonecks1

It's disappointing that TT needs until the 7th to get the form ready. The instructions have been official for a couple of days now and the draft instructions were out there for the past month. I can't believe they didn't have someone working on the program based on the draft instructions so once they went final, they could simply push a button to update the system. From what I hear TaxAct had the update pushed out the next day and people are filing without issue.

mjtroll

2/3 I just spoke with Turbo Tax and they said 2/7 scheduled update.. I related to them that other software providers already have update installed

Dan1900

I am having the same problem. Solution seems simple if TurboTax would just allow us to edit lines 29 - 30 in Form 5695. The real problem is probably the category that we are forced to enter the dollar amount within the TurboTax application. This restricts the user to 10 percent or $300. However, the user should be allowed a category of 30 percent for the items associated with line 29 of Form 5695.

DoninGA

Employee

@Dan1900 No, the problem is that the Form 5695 where you are entering the cost has not been updated for tax year 2023.

The Form 5695 Residential Energy Credits for tax year 2023 has not yet been finalized in TurboTax.

The Form 5695 is scheduled to be available in TurboTax on 02/07/2024 (subject to change).

Go to his TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

Jedi4380

Well it's 2/7. The form isn't here and the site still says 2/7. Fun.

conwabt

It is now February 7 and my TurboTax still has not updated the Residential Energy Credits. When can we expect this update. Thank you Brian C

DoninGA

Employee

@conwabt TurboTax normally updates the software on Thursdays. Check tomorrow, 02/08.

waitingnow

It's Feb 8th and still no update. What's the hold up?

DoninGA

Employee

@waitingnow wrote:

It's Feb 8th and still no update. What's the hold up?

The software for the Form 5695 has been updated today.

If you are using the TurboTax desktop CD/Download editions, click on Online at the top of the desktop program screen. Click on Check for Updates.

You will need to go back through the Residential Energy Credits section to enter your information for the credit.

JoeB99

Where is the Home Energy Credit for air source electric heat pumps that qualify for 30% up to $2000? I just see the geothermal heat pump section which is a different type of heat pump.

CinTexas

We replaced our AC with a heat pump + air handler, what value do we enter for the "qualified energy property costs"?, the total amount we were charged, or just the cost of the heat pump?

Vanessa A

You would enter the cost of the heat pump+ air handler and the labor for the heat pump installation. The air handler is the indoor part of your heat pump system. This credit is 30% of the cost, but is limited to $2,000.

The Home Improvement Energy Efficient Credit is a non-refundable credit

Worth up to 30% of costs with a maximum credit $2,000 for
- Air source heat pumps
- Heat Pump Water Heaters
- Biomass Stoves or Boilers
Worth up to 30% of qualifying costs for a maximum combined total of $1,200 for the following:
- Doors, Windows and Skylights
- Insulation
- Natural Gas, Oil Propane Water Heaters
- Furnaces
- Boilers
- Central Air Conditioners ($600 maximum Credit)
- Electrical Panel Upgrades
- Home Energy Audit (up to $150)
You can combine the $2,000 credit with the $1,200 credit for a total of $3,200
This credit is a use it or lose it credit. If you do have enough tax liability in the year you buy and install the item, you will not be able to carry the credit forward.
NOT available for new construction.