Home Energy Credit for new HVAC system - What documents do I need to claim this credit on my taxes?

Thanks for the detailed response! So just to be clear, I fill out Form 5695 and include it with my return, but I don't need to mail in any of the supporting documents? I just keep them in case I'm audited? Also, what happens if I can only find documentation for the outdoor unit but not for the furnace or air handler? Can I still claim the $300 portion of the credit for just that component?

Correct - you only need to fill out and include Form 5695 with your tax return. Keep all the supporting documentation in your records, but don't mail them with your return. Yes, you can claim the credit for just the components you can verify. If you can only document that the outdoor unit qualifies, then you could claim just the $300 portion of the credit. The credits are component-specific, so each part of your system is evaluated separately. I'd recommend trying to contact your installer to get the model numbers for the other components though - they should have this information in their records.

How does this actually work? Do real tax professionals review your documents or is it just some automated thing? I'm always skeptical of these tax tools because I got burned once with bad advice.

Does it also handle other home improvement energy credits? I installed new windows last year but I'm totally lost on whether they qualify or what documentation I need.

It's a mix of AI analysis and tax experts. You upload your documents and their system scans them for the important details, but there are actual tax professionals who review the complex cases. Much more reliable than just trying to figure it out yourself! For windows, yes definitely. It handles all residential energy credits including windows, insulation, doors, roofs, and HVAC systems. You just upload your receipts and product documentation, and it identifies which improvements qualify and for how much. It even helps with the carry-forward credits if you can't use them all in one year.

Wait this can't be real. How does paying some website get you through to the IRS faster? Doesn't everyone have to wait in the same phone queue?

I'm not sure talking to the IRS is the best way to handle this. Won't they just flag your return for audit if you call asking questions? I'd rather just work with my tax professional than put myself on their radar.

It actually uses a system that continuously dials the IRS for you and navigates the phone tree automatically. When it gets a human agent, it calls your phone and connects you. You're not cutting in line - the service is just doing the tedious hold time for you. That's a common misconception. The IRS actually encourages taxpayers to call with questions rather than filing incorrect returns. The agents are there to help with exactly these types of questions, and seeking clarification definitely doesn't trigger audits. In fact, the agent I spoke with gave me information that helped me document everything properly, which would actually reduce audit risk.

Where do you find the model numbers on these units? I had a new AC installed last summer but I have no idea where to look for this info. Is it printed somewhere specific on the unit itself?

For most HVAC systems, there's a data plate or label somewhere on the unit. On outdoor AC units, it's usually on the side of the cabinet. For furnaces, look for a label inside the front panel/door. The model number, serial number, and usually the energy efficiency ratings are listed there. If you can't find it, take a picture of any labels you do see and ask your installer - they should have recorded all this information when they installed it. They might even have efficiency certification documents they can provide you since they're required to keep those records for rebate programs.

You can amend your return from 2021 to claim the credit! The IRS generally allows you to amend returns within 3 years of the original filing date, so you're well within the timeframe. You'll need to file Form 1040-X (amended return) along with a completed Form 5695 for that tax year. Just make sure you use the 2021 version of Form 5695, as the credit amounts and requirements might be different from the current year.