How do I enter information for the Residential Energy Efficient Property Credit on Form 5695?
Entries for Residential Energy Credits, figured on Form 5695, are made on screen 5695 on the first Credits tab. Before claiming a credit, review the Form 5695 Instructions to ensure that the taxpayer and the specific improvements qualify for the credit. Generally, improvements must meet certain energy efficiency requirements. Special rules apply to jointly owned property, and married taxpayers with more than one home.
Two types of credits are reported on Form 5695:
- Residential Clean Energy Credit (5695 screen > Part I tab)
- Energy Efficient Home Improvement Credit (5695 screen > Part II tab)
Note that, "the residential clean energy credit (Part I) is available for both existing homes and homes being constructed. The energy efficient home improvement credit (Part II) is only available for existing homes."
Form 5695 and Form 5695 pg 2 will only generate in View/Print mode when a credit is calculated. These credits are non-refundable (review Wks CRED_LMT), but carry to Schedule 3 if allowed. Carryover credit amounts appear on Wks CARRY.
Note that only two screens 5695 are allowed per return.
Also see the Federal Tax Credits for Consumer Energy Efficiency for details.