Warning: Turbo Tax 2023 as of Dec 5 2023 does NOT have the updated Residential Energy credit programmed into it

Forum|Forum|2 years ago
December 6, 2023
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I nstalled a tankless hot water heater (natural gas). The credit is not capped based on prior years' credits. There is a new law in play because some thing something green new deal.

The Act repealed the lifetime credit limitation and instead generally limits the allowable credit to $1200 per year.

However, a $2000 annual limit applies with respect to amounts paid or incurred for electric or natural gas heat pumps and heat pump water heaters, and biomass stoves and boilers (IRC section 25C(b)). Thus the maximum total yearly energy efficient home improvement credit may be up to $3200

Anonymous_

Employee

Certain components of the program are not yet complete.

Returns are not even being accepted at this point.

17999

understood, but it would be helpful to have the updates for those us who have made substantial energy investments and are trying to make year-end tax-planning decisions.

Critter-3

A LOT of the program is not functional yet mostly due to the IRS not being ready ... they have not yet issued all of the final forms or instructions for many items.

These first releases of the program are usually very buggy and will require MANY updates before it becomes fully functional which usually will not happen until late January or sometime in February depending on the forms you need. So patience will be needed as the IRS has not even announced when the 2023 filing season will start yet.

The tax programs this year have had to be reworked (again like last year) by every tax software company due to the changes above since it is not just as simple as " adding a form or worksheet " since many of the forms interwork with each other ... lots of moving parts to coordinate. And before they can get final approval they need to be tested and approved by the IRS who themselves are not up to speed yet ... this is an impossible situation that will require patience on all fronts.

Although TurboTax may allow you to e-filed some returns as early as 1/8/24 (IF the forms in your return are ready for filing … see info below) they are NOT actually sent to the IRS. TurboTax stores those early filed returns in a holding “POOL” until the IRS opens for business and “drains the pool” for processing ... only then will you get an e-mail telling you if the return was accepted or rejected by the IRS.

Only the simplest returns can be transmitted to TurboTax early. Some forms will not be finalized until Jan 25 and some later than that.

https://ttlc.intuit.com/questions/1908854-forms-availability-table-for-turbotax-federal-products-exc...