Anybody used H&R block at home? Tax Credit

[Spoon]

I am doing my taxes and trying to figure out where I can input my tax credit for my wood stove install. Thanks.

 

[BrotherBart]

Form 5695 Residential Energy Tax Credit

 

[Spoon]

Thanks BB. I finally figured out which one it was hidden in.

 

[SpeakEasy]

Thanks BB. I finally figured out which one it was hidden in.

You found it????

Did the form have a blank on it for you to use for your stove????

I have been able to find their Form, but their version of it is an early version and it does not have any blanks for the biomass credit. I called HRBlock and they were very little help. They told me to put the cost of my unit in a blank that's labeled for something else. They actually told me that it really didn't matter. If the IRS questioned it, the important thing was that I have the backup documentation to prove that I bought the stove. Can you imagine!

-Speak

 

[newstove]

Thanks BB. I finally figured out which one it was hidden in.

You found it????

Did the form have a blank on it for you to use for your stove????

I have been able to find their Form, but their version of it is an early version and it does not have any blanks for the biomass credit. I called HRBlock and they were very little help. They told me to put the cost of my unit in a blank that's labeled for something else. They actually told me that it really didn't matter. If the IRS questioned it, the important thing was that I have the backup documentation to prove that I bought the stove. Can you imagine!

-Speak

It's easy - but you have to look at the instructions for Form 5695. For Form 5695, you enter the information on line 3a. In the H&R Block program, that translates to the "Heat Pump, central air conditioner, or water heater" line.

Right from Form 5695 instructions here http://www.irs.gov/pub/irs-pdf/f5695.pdf

"Line 3a. Enter the amounts you paid for energy-efficient building
property. Energy-efficient building property is any of the following.

c An electric heat pump water heater that yields an energy factor of at
least 2.0 in the standard Department of Energy test procedure.

c An electric heat pump that has a heating seasonal performance factor
(HSPF) of at least 9, a seasonal energy efficiency rating (SEER) of at
least 15, and an energy efficiency rating (EER) of at least 13.
For property placed in service after February 17, 2009, the property
must achieve the highest efficiency tier established by the Consortium
for Energy Efficiency (CEE) as in effect on January 1, 2009. However, if
you purchased property before June 1, 2009, you can still take the
credit if you relied on the manufacturer's certification issued before
February 18, 2009, that the property met the standards in effect before
February 18, 2009.

c A central air conditioner that achieves the highest efficiency tier that
has been established by the CEE as in effect on January 1, 2006.
For property placed in service after February 17, 2009, the property
must achieve the highest efficiency tier established by the CEE as in
effect on January 1, 2009. However, if you purchased property before
June 1, 2009, you can still take the credit if you relied on the
manufacturer's certification issued before February 18, 2009, that the
property met the standards in effect before February 18, 2009.

c A natural gas, propane, or oil water heater that has an energy factor of
at least 0.80 or a thermal efficiency of at least 90%.
For property placed in service after February 17, 2009, the property
must have an energy factor of at least 0.82 or a thermal efficiency of at
least 90%. However, if you purchased property before June 1, 2009,
you can still take the credit if you relied on the manufacturer's
certification issued before February 18, 2009, that the property met the
standards in effect before February 18, 2009.

c A stove that uses the burning of biomass fuel to heat your home or
heat water for your home that has a thermal efficiency rating of at least
75% as measured by using a lower heating value. Biomass fuel is any
plant-derived fuel available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood waste and residues
(including wood pellets), plants (including aquatic plants), grasses,
residues, and fibers."

 

[DanCorcoran]

Actually, H&R Block is right. As long as you declare all income that's required to be reported and take deductions that are legitimate, then putting an item or two on an "other" line on a form is not a big deal. You certainly don't want to provoke an audit, but if you are audited, then having your documentation is the key.

If you think about it, the IRS has very little to go on when reviewing your return. Your employer reports wages, and the taxes they deducted, banks report interest and dividends, etc. But when it comes to deductions, the IRS takes your word for them until you are audited. Then they expect you to have kept the proof. Their initial review of your return is primarily to ensure that your math is correct and that you reported all income.

 

[Spoon]

Thanks BB. I finally figured out which one it was hidden in.

You found it????

Did the form have a blank on it for you to use for your stove????

I have been able to find their Form, but their version of it is an early version and it does not have any blanks for the biomass credit. I called HRBlock and they were very little help. They told me to put the cost of my unit in a blank that's labeled for something else. They actually told me that it really didn't matter. If the IRS questioned it, the important thing was that I have the backup documentation to prove that I bought the stove. Can you imagine!

-Speak

It's easy - but you have to look at the instructions for Form 5695. For Form 5695, you enter the information on line 3a. In the H&R Block program, that translates to the "Heat Pump, central air conditioner, or water heater" line.

Right from Form 5695 instructions here http://www.irs.gov/pub/irs-pdf/f5695.pdf

"Line 3a. Enter the amounts you paid for energy-efficient building
property. Energy-efficient building property is any of the following.

c An electric heat pump water heater that yields an energy factor of at
least 2.0 in the standard Department of Energy test procedure.

c An electric heat pump that has a heating seasonal performance factor
(HSPF) of at least 9, a seasonal energy efficiency rating (SEER) of at
least 15, and an energy efficiency rating (EER) of at least 13.
For property placed in service after February 17, 2009, the property
must achieve the highest efficiency tier established by the Consortium
for Energy Efficiency (CEE) as in effect on January 1, 2009. However, if
you purchased property before June 1, 2009, you can still take the
credit if you relied on the manufacturer's certification issued before
February 18, 2009, that the property met the standards in effect before
February 18, 2009.

c A central air conditioner that achieves the highest efficiency tier that
has been established by the CEE as in effect on January 1, 2006.
For property placed in service after February 17, 2009, the property
must achieve the highest efficiency tier established by the CEE as in
effect on January 1, 2009. However, if you purchased property before
June 1, 2009, you can still take the credit if you relied on the
manufacturer's certification issued before February 18, 2009, that the
property met the standards in effect before February 18, 2009.

c A natural gas, propane, or oil water heater that has an energy factor of
at least 0.80 or a thermal efficiency of at least 90%.
For property placed in service after February 17, 2009, the property
must have an energy factor of at least 0.82 or a thermal efficiency of at
least 90%. However, if you purchased property before June 1, 2009,
you can still take the credit if you relied on the manufacturer's
certification issued before February 18, 2009, that the property met the
standards in effect before February 18, 2009.

c A stove that uses the burning of biomass fuel to heat your home or
heat water for your home that has a thermal efficiency rating of at least
75% as measured by using a lower heating value. Biomass fuel is any
plant-derived fuel available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood waste and residues
(including wood pellets), plants (including aquatic plants), grasses,
residues, and fibers."

That is where I found it.