How Do You Fill Out IRS Form 5695?

How Do You Fill Out IRS Form 5695?

Fill out IRS Form 5695 by indicating the purchase price and charges for installation of certain energy-efficient appliances, explains TurboTax. You also may claim a credit for the purchase of certain energy-efficient improvements.

When filling out Form 5695, you are providing information regarding energy-efficient home improvements and purchases for energy-efficient home appliances, explains TurboTax. Appliances include air conditioners, heaters, stoves that run on biomass fuels, and water heaters. It is possible to deduct the purchase price as well as the installation. You may also claim credit for the purchase of energy-efficient windows, skylights, doors and certain roofs, and by increasing the insulation in your home. You cannot include the costs of installing the equipment in the home.

When filling out Form 5695, it is important to know which homes qualify. The energy credit is available for improvements made to any home, whether it's a vacation home or a main home, states TurboTax. The improvement credit can only be taken if the improvements you made are to your main home, which is the home you live in most of the time. This includes condominiums, mobile homes, houseboats, cooperative apartments and houses. If you own more than one home and spend time equally between them both, you can only claim the credit for one of those homes.