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meadow-paul
April 1, 2025
Solved

why did turbotax not give me the max $2000 tax credit for heat pump

  • April 1, 2025
  • 1 reply
  • 0 views

We spent $19,000 for the heat pump

Our tax liability in > $11,000

TurboTax Home and Business 2024 is only giving $1748

30% * 19,000  = $5700 - well north of the $2000 cap

    Best answer by AmyC

    Your tax liability minus credits. You don't get credit against the SE tax. The SE tax is form 1040 line 21. 

    Form 5695 Line 31 has a worksheet on page 7  of Instructions for Form 5695. It begins with your tax from 1040 line 18. You can see child care, education, foreign tax credit, retirement and more comes into play.

    1 reply

    DawnC
    DawnC
    Employee
    April 1, 2025

    Look at Form 5695 to see how the credit was calculated.   Your credit amount is on Line 29e and Line 31 will show any tax liability limitations.   What does your Form 5695 show for those 2 lines?  

     

    You may want to delete that form and re-enter the credit information again.  

     

    How to delete forms in TurboTax Online

     

    How to delete forms in TurboTax Desktop

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    M
    meadow-paulAuthor
    April 1, 2025

    Oh - I see.  Line 29e is $2000, but line 31 is $1748.  I guess that's because the balance of our tax liability is self-employment tax for my wife?

     

    Thanks,

    Paul

    AmyC
    AmyCAnswer
    Employee
    April 1, 2025

    Your tax liability minus credits. You don't get credit against the SE tax. The SE tax is form 1040 line 21. 

    Form 5695 Line 31 has a worksheet on page 7  of Instructions for Form 5695. It begins with your tax from 1040 line 18. You can see child care, education, foreign tax credit, retirement and more comes into play.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
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