I spent so much money on home improvements (Window, doors, insulation, AC, furance, water heater, etc.) and I'm only getting $657 instead of max credit of $3200.

Forum|Forum|1 year ago
January 18, 2025
1 reply
0 views

I know that you can get max credit of $3200 once a year. I spent $7000 on furance so I should be getting $600 back I spent $3500 on AC so I should be getting $600 back I spent $3500 on insulation so I should be getting $600 back I spent $2500 on new electric circuit and upgrade 150 AMP - I should be getting $600 back I spent more on new doors, windows, etc so I should be getting max credit of $3200 but instead I only got $657 back so what am i missing. I only filled in W-2 form, mortage interest and EIC (one child).

AmeliesUncle

Did you only have $657 of income tax before the energy credit (look at lines 16 through 22 of your Form 1040)? The credit is non-refundable, meaning that if your income tax is only $657, it can't give you credit of more than $657.

As a side note, unless your furnace or water heater is a "heat pump", the maximum credit is only $1200. The extra $2000 is only for a "heat pump".