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Form 5695 Windows Credit - Northern Region

Serious question.  Has anyone had a client residing in the northern zone who in 2023 had windows qualify for the tax credit?

It seems, at least for my clients, that the hype about tax credits has been a lot of smoke and mirrors.

11 Comments 11
IRonMaN
Level 15

Quit reading the instructions and you will have a lot more qualifying 😜


Slava Ukraini!
0 Cheers
Just-Lisa-Now-
Level 15
Level 15

whats the reason they dont qualify for the credit?   Just the wrong type of windows?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
0 Cheers

They don't meet the new standard of Energy Star most efficient certification.  These new requirements are much stricter than the old requirements found in Energy Star V6, which was in effect for 2022.  So I have had several clients with windows that would have qualified under V6 or even new V7 but don't qualify under most efficient certification.

IRonMaN is once again correct, I need to stop reading this stuff.  Ignorance is bliss.  And I hope to be retired before IRS audits 2023.  Of course, I say that every year!

Camp1040
Level 10

Generally if I see an Energy Star emblem, it's good to go!

And I think generally, that is wrong.

And I don't mean that in a demeaning way.  As I asked in a different thread, it would be nice and helpful if these standards were compiled somewhere like, oh I don't know, maybe the instructions to Form 5695 listing what is specifically required to get the credit instead of us preparers having to play detective and find stuff that should be readily available but clearly is not.

This topic really gets under my skin.  I need some Fireball!

Camp1040
Level 10

You are correct, we are not detectives, we use the information supplied and good judgement. You can't be running around with an infrared scanner to confirm the energy star documents that the taxpayer bring to you.

Just don't drink the gas station Fireball sold at the checkout....no alcohol!!

But it is so frustrating.  Client comes in with window stickers showing Energy Star approved window stickers purchased and installed in 2023.  I said no, they would have qualified under 2022 standards but not under new standards.  The client was upset and called the window guy who told him it qualified and I was wrong.  I said have window guy put it in writing citing relevant rules, law, etc.  When that didn't come, the client called IRS, who said take credit.  Client doesn't get that IRS phone advice is worthless and is not listed anywhere as substantial authority.  Client thinks matter is settled and gets credit.  I  say I am going to do more research on matter and in the meantime, client calls manufacturer.  Finally, manufacturer says windows do NOT qualify.  So now I have a ticked off client over this matter and me ticked off for several reasons and knowing someone else would put the credit down while all I am trying to do is do it right.

 

IRonMaN
Level 15

I'll give you an A+ for effort.  It is frustrating when you try to do something correctly and the client gets pissed because of it.  Go sit back and relax with a case of Fireball to help soothe your nerves.


Slava Ukraini!

Thank you for the kind words.  It is appreciated, especially from a fellow preparer.  We all know our clients don't understand the effort needed to just be in this business these days, with WISP associated costs, cyber liability, continually changing laws, etc.  And TurboTax undercuts us further.