Skip to main content
February 10, 2024
Question

Form 5695 is NOT calculating 30% tax credit correctly. It automatically puts in $600 limit on Lines 22b and 32. What should I do?

  • February 10, 2024
  • 1 reply
  • 0 views
30% of $17,186 is not $600.  It should be $515.  Why does TurboTax insert $600 instead?  Later after tax liability limits this credit it still puts in $600 even though my tax liability reduced the credit to $438.  

1 reply

DoninGA
Employee
February 10, 2024

IRS Form 5695 Residential Energy Credits Instructions (2023) - https://www.irs.gov/pub/irs-pdf/i5695.pdf

 

For the Energy Efficient Home Improvement Credit -

Qualified Energy Efficiency Improvements
You may be able to take a credit equal to 30% of the sum of:
1. The amount paid or incurred for qualified energy efficiency improvements installed during 2023,
2. The amount of the residential energy property costs paid or incurred in 2023, and
3. The amount paid or incurred for home energy audits during 2023.
However, this credit is limited as follows.
• A total combined credit limit of $1,200 for qualified energy property.
• A credit limit of $600 for any qualified energy property item.
• A combined credit limit of $600 for all exterior windows and skylights.
• A credit limit of $250 for any qualifying exterior door and $500 total for all qualifying exterior doors.
• A combined credit limit of $2,000 for heat pump and heat pump water heaters; biomass stoves and boilers.
• A credit limit of $150 for home energy audits

 

The credit limit for each property is as follows.
• $1,200 for insulation or air sealing material system.
• $250 for one exterior door and $500 for all exterior doors.
• $600 for windows.
• $600 for central air conditioners.
• $600 for natural gas, propane, or oil water heaters.
• $600 for natural gas, propane, or oil furnace or hot water boilers.
• $600 for improvements or replacements of panelboards, subpanelboards, branch circuits, or feeders.
• $150 for home energy audits.
• $2,000 for heat pumps and heat pump water heaters; biomass stoves and biomass boilers