Amending a 2009 Return: Joint Homeowners and Energy Credit Error

If you owned your home jointly with another person or persons and you claimed the residential energy credit on your 2009 tax return, TurboTax might have incorrectly given you a credit larger than is allowed.

Owning a home jointly or as joint occupants refers to individuals who share ownership and also occupy the same home. The terms don’t refer to married couples who own a home or who file joint tax returns.

TurboTax corrected the issue for joint home owners claiming the energy tax credit on May 28.

If you did receive a credit larger than allowed, you will need to amend your 2009 tax return.

The residential energy credit is available to homeowners who purchase and make qualified home energy improvements in 2009 and 2010.  The credit is worth 30 percent of up to $5,000 worth of improvements to your main home, for a maximum credit of $1,500 over the two years combined.

Here's how to tell if you need to amend:

• You answered “Yes” when the program asked, “Were you the Joint Occupant of your house in 2009?” AND,
• You and the other occupant(s) shared the cost of the energy improvements (you didn't pay 100%) AND,
• The total cost was more than $5,000.

The IRS limits your credit to the actual cost you paid for improvements, or your share of the total cost paid by all owner occupants, whichever is less.

1. Open your TurboTax return.
2. Select the Federal Taxes tab (Personal tab in TurboTax Home & Business product) at the top of the screen.
3. Then select Other Tax Situations directly below the tabs, as shown below.

Scroll down to Other Tax Forms, then follow these instructions:

1. Next to Amend a Return, select Start.
2. Then answer a series of interview questions about your return, such as whether you e-filed or mailed your return.
3. When you come to a screen that says “Tell Us Why You Need To Amend Your Return”, select the first option: “I need to change or add something to the return I already filed.”
4. Follow the steps on the next screen for “Saving Your Original Return.”

Next you'll see a screen that says, “Tell Us Which Returns You Want to Amend."

In some circumstances, you will need to amend your state as well as your federal return. If this applies to you, select "I want to amend my federal and state returns."

You will need to amend your state if you:

• Filed a return in any of the following states -- Alabama, Louisiana, Missouri, Oregon, or Rhode Island
• Had a Mortgage Interest Credit on your federal return (Form 1040, line 52, with the box checked for Form 8396) and filed in any of the following states -- Arizona or Idaho
• Claimed an Adoption Credit on your federal return (Form 1040, line 52, with the box checked for Form 8839 ) and filed in one of these states -- Kansas or North Carolina

Otherwise you only need to amend federal return.

1. Select the option  “I want to amend only my federal or only my state return."
2. A screen will pop up asking Select Any that Apply.
3. Check “Amend my federal return” then select Continue.
4. Answer the questions about your original return.
5. On the screen that says “Important: Follow these Amended Instructions” print out the instructions.

Follow these steps to add new information for your energy credit:

1. Select the Federal Taxes tab, then Deductions and Credits.
2. Choose “Explore on My Own."
3. Scroll down to Home Energy Credits and select Update.

Go through the Energy Credit screens until you come to “Enter Qualified Energy Efficiency Improvements.”

For each improvement that you had entered an amount you paid, enter the total paid for that improvement.

When complete, select Continue.

1. Again, select the Federal Taxes tab (Personal tab in TurboTax Home & Business product) at the top of the screen.
2. Then select Other Tax Situations.
3. Select Update next to Amend a Return.
4. On the screen titled "Tell Us What You Need to do Next", select" I’ve made my changes and need to finish amending my federal return."
5. On the next screen "Explain Why You Amended Your Return", enter “Form 5695, Residential Energy Credit, was incorrectly calculated for a joint occupancy home” and select Continue.
6. Select the Federal Taxes tab and then the Error Check sub tab to find and correct any errors.
7. Now it’s time to print your return. Select the File tab and then select Print/ Save sub tab.
8. Select Print Returns.
9. On the print screen, select “All Official Forms to file” and “Form 1040: Indivdual.” Select Print.
10. The printed return will give you instructions on how to mail your amended return. Amended returns can't be e-filed. They must be mailed.