Form 5695 Error in Section B on review - TT Desktop 2023

[jim-means]

Howdy all,

We replaced the front exterior door, storm door, and all the windows in our one and only house (primary residence and in the US) in 2023.  We own no other real estate.

Jumped back into TT Desktop today (2/10/24) as I was notified yesterday that Form 5695 was available in TT Desktop.  Fired TT back up, installed updates and reviewed the home energy section again.  I say "again" because I'd already run thru the interview for it before I knew 5695 was unavailable.  Not sure if that has anything to do with my issue.

I reviewed the credit again.  TT recalculated our credit and refund.   When I ran the review before filing, it flagged me with "Incurred costs for the qualified energy property installed should have a chosen selection", showing missing data on lines 21a & b in Section B of the form.  There were no questions in the interview directly addressing them that I could tell.  To add to the confusion, they seem almost like repeats of Section A lines 17a-d. 

I've searched this community, downloaded the IRS 5695 instructions, and googled my fingers off and can't find anything the properly explains the difference between line 17 and 21 on this form.  I'm especially stumped by 21b "Was the qualified energy property originally placed into service by you?".  The word "property" is what's throwing me.  Already answered that it's our own home in Section A.

With the update and me having already run the interview before the form release, I'm wondering if the TT code is a little confused now.  Thinking maybe I should delete the form, save my file, shutdown and restart TT and do the energy credit "fresh".  Any direction you can provide would be a help.

[DoninGA]

Since you entered information prior to the Form 5695 for tax year 2023 being updated, it would be best of you delete the Form 5695 and start that section of the program fresh.

Click on Forms.  When in Forms mode locate the Form 5695, click to open and click on Delete Form at the bottom of the page.

Go back to the interview -

To enter Home Energy Credits -

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credit
Click on I'll choose what I work on (if shown)
Under Your Home
On Home Energy Credits, click the start or update button

[jim-means]

Thanks @doninGA 

So, followed my hunch and your directions.  Even restarted TT with no form 5695, then went back through the interview for home energy credits. Still received errors:

1. Even though I answered No to "Did you have any residential energy property costs in 2023?", the software left line 26a blank. It should have logged a No in the checkbox.  I allowed the process to log the No.

2. Still received errors for lines 21a & b. Allowed the error check process to answer Yes to both

3. Ran Smart Check again

4. It insisted on an address in 21c, which is the same address as the 1040 and line 17d on the 5695.  Entered our home address again.

It finally found no errors, but I question all of the "errors" above. I think #1 is a bug. I can't explain #2-#4 - as they seem to all be linked to the topic of #1.

I'm not following thru with filing until I'm sure this is correct.

[DoninGA]

Where asked  "Did you have any residential energy property costs in 2023?" answer Yes and continue.

[jim-means]

Hate to be a pain, but that question is specific to expenses for:
-Qualified central air conditioners,
-Natural Gas, propane, or oil water heater or water boilers,
-Replacement of panelboards, subpanels, branch circuits, or feeders (IOW, electrical work),
-Home energy audits,
-Heat pumps and heat pump water heaters, biomass stoves and biomass boilers

We did none of those things. However, I followed your instructions and answered yes. TT took me through questions for lines 21a & b. It did not ask me about the address for 21c, but caught it in Smart Check and I entered.

I still believe this is incorrect. You don't have to install any of the items listed above to receive an energy credit for replacing exterior doors and/or windows.

[jim-means · Accepted solution]

I finally got around TT insisting that I answer Yes on lines 21a and 21b the day after I logged this issue.

After carefully re-reading the IRS instructions for form 5695, I found that Section B is not required if all you need is credit for installing new exterior doors and/or windows.  The form even instructs you to skip down.

The solution:

- I edited that form directly (View, Forms)

- In Section B, I answered NO on lines 21a and 21b, then blanked out the address TT previously forced me to enter in 21c

- Saved my TT files

- Even went back through the interview for that form again to make sure that no funny business was going on behind the scenes.  Everything looked fine.

- eFiled, finally!

Calling this issue closed.