energy tax credit carryforward from 2022

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focushard
focushard Member Posts: 1 Newcomer
edited January 15 in Credits/Deductions

In 2022, I did 12k worth of windows, eligible for energy credit. I used 4 (ish) k, applied to 2022 taxes, due to limit on tax liability. When filling out 2023 taxes, it says to use carryforward, refer to for 5695, line 16, but on 2022 return, this is blank.

There is a space to write in carryforward (I think I should have $8160 left that wasn't used in 2022). Should I write this in? Why is my 5695 line 16 on 2022 return blank? I would have thought this would autopopulate (been using freetaxusa for years)

Answers

  • AlexO
    AlexO FreeTaxUSA Agent Posts: 74
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    Hello, focushard!

    That is a great question!

    Line 16 of the 2022 Form 5695 is for the residential clean energy credit carryforward, which is for costs such as solar systems, biomass fuel, geothermal heat pumps, etc.

    The energy-efficient home improvement credit is the credit for energy-efficient windows. For 2022, this credit is a maximum of 10% of $2,000 of the cost for windows.

    Thus, you can't carry forward $8,160 of the credit. If line 30 of your Form 5695 shows $200, you would have already claimed the maximum credit for 2022 and have no carryforward.