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Why do I not qualify for gas furnace installed in 2021? I paid $5,712 for it?

Forum|Forum|4 years ago
January 28, 2022
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I bought the house in June 2021. Furnace was installed October 2021 and I was told it qualifies for the home energy tax credit. I entered the information and TurboTax says I can't get the tax credit. Obviously, no prior year window improvements, home energy credit, or carry forward. Only other energy-efficient improvement was new A/C at the same time.

Thank you.

TurboTax Deluxe Online

Best answer by ColeenD3

Double-check your entries. Page 1 of the interview covers solar, geothermal, wind, and fuel cell. If you're looking for other improvements, like doors, windows, furnace, air conditioning, or heat pump, just keep going to the next page.

If you made energy-efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you'll be able to claim the Nonbusiness Energy Property Credit for 10% of amounts paid for qualified energy efficiency improvements, up to a lifetime cap of $500 or fixed dollar amounts ranging from $50 to $300 for energy-efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.

ColeenD3Answer

Double-check your entries. Page 1 of the interview covers solar, geothermal, wind, and fuel cell. If you're looking for other improvements, like doors, windows, furnace, air conditioning, or heat pump, just keep going to the next page.

If you made energy-efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you'll be able to claim the Nonbusiness Energy Property Credit for 10% of amounts paid for qualified energy efficiency improvements, up to a lifetime cap of $500 or fixed dollar amounts ranging from $50 to $300 for energy-efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.