IRS Tax Form 5695 is available....update 1/26

[imacman]

Thanks to forum member "fataugie" for providing this link in another thread. I figured I'd make a new one so everyone who needs it won't miss it buried at the end of the other thread.

This is the link to the actual Form 5695 and it is interactive, so you can actually input figures on it, save it, and/or print it out.

www.irs.gov/pub/irs-pdf/f5695.pdf

The complete instructions are also included after the form. (I put the part that pertains to us below, and left out stuff that didn't pertain to pellet stoves)

The section needed by new stove owners is Section 3. All the amounts that pertain to the purchase price of the stove, pipe, hearth pad, installers costs, etc, are to be put on line 3a:

"TIP Lines 3a Through 3c
Also include on lines 3a through 3c any labor costs
properly allocable to the onsite preparation, assembly, or
original installation of the property.

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

• 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."

 

[geek]

thanks mac, good to know....hope Turbotax will soon be updated with this....

..

 

[imacman]

thanks mac, good to know....hope Turbotax will soon be updated with this....

..

Geek, I just updated the turboTax today (there are some updates available), and I read the updates "notes"....Intuit will have the forms done, approved by the IRS, and available to be updated into your computer on 1/27/10.

 

[Bigjim13]

Still a bit bitter about this, put my stove into service about 3 months to soon it appears. Oh well, would have been a nice tax credit. Story of my life, just missing by this much!

 

[geek]

Still a bit bitter about this, put my stove into service about 3 months to soon it appears. Oh well, would have been a nice tax credit. Story of my life, just missing by this much!

I think what matters the most is that the stove was placed in service in 2009, you can apply for the credit, I think.

..

 

[SXIPro]

I think it should be retroactive to WHEVEVER you bought the stove AND it should give a credit per ton of pellet usage going forward as well. That would motivate a lot more people to stop handing money to the rag heads that are trying to kill us.

 

[mascoma]

I too missed the credit by a few months.
But You can't stimulate the economy by rewarding past behavior.

 

[hossthehermit]

I think it should be retroactive to WHEVEVER you bought the stove AND it should give a credit per ton of pellet usage going forward as well. That would motivate a lot more people to stop handing money to the rag heads that are trying to kill us.

Bet ya catch it from the political police on here for THAT one.

 

[imacman]

UPDATE for TurboTax users: From what I can figure out reading some responses on the Live Help in TurboTax, the update to Form 5695 should be done and ready for download between 1/21 and 1/27.

The amount you claim goes on line 3a. Go back to my first post in this thread for more info.

 

[defield]

Macman or Others,

Has anyone used form 5695 with Turbotax yet?

Just installed mine this morning, but have not started filling out the return.

Thanks,

Ranger

 

[imacman]

Ranger, I input my amount on the current form, and it will take it and will correctly give you the credit. The only thing the new form will have vs. the old one, is that it will specifically state in the instructions is that it can be used for "biomass burning" devices. I'm sure the form itself probably would go through as is, but I'm going to play it safe and wait for the update on TurboTax.

Here's the "paper version" of the new form. Look at P.5 of the instructions for Line 3.......you'll see a mention of Biomass stove.

http://www.irs.gov/pub/irs-pdf/f5695.pdf

EDIT: The actual amount gets put on line 3a

 

[Ladderlieu]

I think it should be retroactive to WHEVEVER you bought the stove AND it should give a credit per ton of pellet usage going forward as well. That would motivate a lot more people to stop handing money to the rag heads that are trying to kill us.

Wish you were right on that! Bought/installed my XXV in 2008. Big sigh....

As for a tax credit on pellets, that would be a wonderful thing for many folks. Makes me wonder now... If someone installed a solar heating system, is the tax credit spread out over "x" number of years? Why can't the use of a pellet stove enable a tax credit for many years as well?

 

[Phatty]

macman i tried to open the link but it told me it was damaged and could not be repaired? does this apply to new stoves only?

 

[imacman]

macman i tried to open the link but it told me it was damaged and could not be repaired? does this apply to new stoves only?

Phatty, I just clicked on the link in your post above, and it worked fine. If you still have trouble, try the green "announcements" section at the top of the forum main page that Craig put in (5th one down). The link is in there too.

BTW, it's a PDF file....you do have Adobe reader, right?

 

[Phatty]

still does it for me i was just wondering if it can be used on used stoves?

 

[snikr]

I bought my Big-E back towards the end of 2008 but didn't put it in till Fall of 2009. Think I can claim that credit?

Tom

 

[Estarrio]

I have until next tax season to worry about this, but I notice that my stove isn't listed on the manufacturer's tax certificate. I guess I know why they were discounted now =)

Anyone else run into this problem? I suppose it wouldn't be an issue unless you were audited but I'm not much of a risk taker.

 

[imacman]

I bought my Big-E back towards the end of 2008 but didn't put it in till Fall of 2009. Think I can claim that credit?

Tom

Tom, you should be good to go. The instructions state it goes by the "date placed into service".

 

[imacman]

I have until next tax season to worry about this, but I notice that my stove isn't listed on the manufacturer's tax certificate. I guess I know why they were discounted now =)

Anyone else run into this problem? I suppose it wouldn't be an issue unless you were audited but I'm not much of a risk taker.

I'd send St. Croix an email and ask about that. There aren't many (if any) pellet stoves that don't meet the EPA requirement, afaik.

 

[Estarrio]

I'd send St. Croix an email and ask about that. There aren't many (if any) pellet stoves that don't meet the EPA requirement, afaik.

Great point - thank you...email sent

 

[imacman]

To all the TurboTax users out there, I got the final download tonight for all the Federal forms, including the instructions for the BioMass tax credit. Your total amount gets put on Line 3a "Energy-efficient building property".

I even checked the instructions, and it now includes "Biomass burning" heating devices.

I e-filed the fed & state 2 days ago, and got confirmation that everything went through OK. Will be getting my Federal $$ by Feb. 5th. YIPPEE!!

 

[jgcable]

Will my owners manual detail my stoves energy efficiency so I can see if it qualifies.
Its a 2007 so I would assume it will qualify.

 

[imacman]

Will my owners manual detail my stoves energy efficiency so I can see if it qualifies.
Its a 2007 so I would assume it will qualify.

What stove do you have? Many stove manufacturers have the "Energy Qualification Certificate" or whatever they call it right on their websites for download & printing.

 

[Swaybar]

Helpful Hint:

If you are using HR Block online, you will not see line 3a on form 5695 when inputting the info, or a biomass option.

Under credits click "Residential Energy Credits"

You will not see a biomass option in the menu. Just put the total cost of the Pellet Stove (including installtion materials and labor) on the line where it says ... Heat pump, central air conditioner, or water heater .... it will put the correct amount on line 3a., and you will see it show up properly on the Form 5695 and on the tax filing.

Here are the instructions for Form 5695(2009)

LINE 3A


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

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

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.

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.

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.

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.

 

[timbo]

Getting ready to do my taxes this week...I do have a question though that I can't seem to find the answer for.

Can I claim the cost of the pellets I purchased this year along with the stove and venting system?

Just curious...

Thanks all...