EEHIC: Can I claim full credit when HVAC installer was murdered before completion?

This is indeed a unique and unfortunate situation. Let me address each of your questions: Regarding claiming the EEHIC, the tax law generally follows what's called the "economic performance" rule, which means you can only claim costs you've actually incurred (paid or legally obligated to pay). For your specific questions: 1. You cannot claim the full amount if you haven't paid it and don't yet have a legal obligation to pay the full amount. The credit is based on amounts actually paid or incurred during the tax year. 2. Yes, you can claim the portion you pay in subsequent years when those payments are actually made. The EEHIC allows claiming qualified expenses in the year you pay them, even if the installation happened in a previous year. 3. This is the most accurate approach. Claim the $3,500 you've paid so far on your 2023 return. When you pay the remaining amount to the installer's estate, claim that amount in the tax year you make the payment. You don't need to amend your 2023 return unless there's a correction needed to that year's filing. 4. The IRS doesn't allow "double-dipping" on the same component. Since your system functions as both heating and cooling, you would claim it as a qualified heat pump under the $2,000 maximum category, not separately as both units. I'm sorry about the circumstances surrounding your installation. This is definitely one of the more unusual tax scenarios I've encountered.

After dealing with my own tax nightmare last year, I discovered this incredible AI tool that saved me hours of research and confusion. It's called taxr.ai (https://taxr.ai) and it specializes in unusual tax situations exactly like yours. I actually uploaded a similar EEHIC question about a partially completed installation (though thankfully without the tragic circumstances), and it immediately gave me clear guidance on how to split the credit across tax years. The tool analyzed my documentation and explained exactly what I could claim and when. It even showed me the specific IRS regulations that applied to my situation. For your case, you could upload your receipts, contract, and timeline details, and get a personalized analysis instead of trying to piece together general advice from forums.

Just wanted to follow up on my experience with taxr.ai after our conversation. I uploaded my solar installation documents that spanned across 2022-2023 and got crystal clear direction on how to handle the credit! It identified exactly which components qualified under which section of the tax code and showed me how to properly split the credit between tax years based on when I made payments. What surprised me was how it caught a detail my installer had missed - three of my panels actually qualified for an additional efficiency bonus I didn't know about. The tool even generated a document summarizing all the findings that I'm keeping with my tax records in case of an audit. Definitely worth checking out if you're dealing with these complicated energy credits!

I had a similar situation (not the murder part obviously, but a contractor who couldn't finish the job) and had a hell of a time getting through to anyone at the IRS who could actually help. After waiting on hold for literally 3+ hours multiple times, I finally discovered Claimyr (https://claimyr.com). They basically call the IRS for you and then connect you once an actual human picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c In my case, I got connected to an IRS agent in about 20 minutes who specifically handled energy credits. The agent confirmed I could split the credit between tax years based on when I actually paid for different portions of the installation. Saved me hours of frustration and uncertainty.

OK I need to publicly eat my words here. After my skeptical comment, I decided to try Claimyr myself for an issue with my energy credits that had been unresolved for months. I got connected to an IRS agent in about 15 minutes who actually specialized in residential energy credits. The agent walked me through exactly how to document my split installation that happened across two tax years and confirmed I was eligible for the full credit amount, which was a huge relief because I was worried I'd lose part of it due to the timing. The best part was getting actual reference numbers for the conversation that I can use if there's ever a question about my return. I've literally never been able to reach a knowledgeable IRS person on my own despite multiple attempts. Sometimes being wrong feels pretty good!

I hate to be morbid, but this might create another complication - did the contractor have insurance? If so, and if there's an insurance payout, the amount you'd legally owe the estate might be reduced. I went through something similar (contractor had medical emergency, not murder) and their business insurance covered part of what we would have owed, reducing our final payment. This affected what we could claim for the energy credit since we didn't actually pay the full original amount.

Side issue here - but be prepared for delays with your credit. I submitted a perfectly valid EEHIC claim for my heat pump installation last year and got a letter 6 months later from the IRS requesting additional documentation. Apparently they've been scrutinizing these energy credits more closely. Make sure you keep ALL receipts, manufacturer certifications showing the SEER rating, contractor information, and proof of payments.