drew1129

Options
drew1129
drew1129 Member Posts: 3 Newcomer
edited January 15 in Credits/Deductions

can I deduct my a/c, I replaced with energy efficient...

Tagged:

Answers

  • kaitw
    kaitw FreeTaxUSA Agent Posts: 2
    Options

    Hi Drew1129,

    Thank you for your question! Short answer being yes, you can definitely report your energy efficient air conditioner as long as it is "Energy Star Certified." This is a part of the Residential Clean Energy Property Credit. This credit is a nonrefundable credit, so it can only reduce taxes owed.

    You can deduct 30% of the cost of the A/C unit, but only up to 600 dollars per energy efficient item purchased and installed on this year's return. Any amount you are not able to claim this year, can be carried forward to claim on next year's tax return for this specific credit. (This is not the same for all Home Energy Credits.) Here is a link to Energy Star with more information regarding this:

    https://www.energystar.gov/about/federal_tax_credits/central_air_conditioning

    Our software will calculate the amount you can deduct, all you have to do is enter it in our software. You can do this by clicking on the "Deductions / Credits" menu tab > then click on the "Home Energy Credit" page. The software will prompt you through entering the information. You will go through several pages before reaching the "Energy Property Information" page. This is where you would then enter your A/C information.

    As always, please don't hesitate to reach out if you have any further questions. We are always happy to help!

  • drew1129
    drew1129 Member Posts: 3 Newcomer
    Options

    I don't know what u mean 600 max

  • kaitw
    kaitw FreeTaxUSA Agent Posts: 2
    Options

    The IRS has a limit on the amount of credit you can claim each year. The limit is $600. If 30% of your costs to install the A/C unit was more than $600 dollars, you will only be allowed to claim the 600 for this year. But, you can claim the excess on your future tax returns. When you are filing your tax return, you will just simply enter the cost of your unit, our software will calculate the credit for you!