To fill out IRS Form 5695 for battery storage, follow these steps:
1. Qualification for Credit
- Ensure the battery storage technology has a capacity of at least 3 kilowatt-hours to qualify for the credit.
2. Completing Line 5a and 5b
- Line 5a: Check the box to indicate if the qualified battery storage technology meets the capacity requirement.
- If “Yes”, proceed to Line 5b.
- If “No”, you cannot include battery storage costs.
- Line 5b: Enter the amount you paid for qualified battery storage technology if it meets the capacity requirement.
3. Calculating the Credit
- Multiply the total cost of the qualified battery storage technology by 30% (0.30) to find the credit amount.
4. Entering Credit on Form 5695
- Follow the IRS instructions for entering the calculated credit on the appropriate lines of Form 5695.
5. Additional Steps for Joint Occupancy or Multiple Homes
- If you have more than one main home, follow the instructions for joint occupancy and multiple homes to ensure accurate allocation of the credit.
6. Attach Supporting Documentation
- Keep receipts and documentation supporting your expenses for qualified battery storage technology, although you typically don’t need to attach these to Form 5695.
7. Submission
- Attach Form 5695 to your tax return (Form 1040) to claim the residential energy credits.
Always refer to the latest version of the IRS instructions for Form 5695 for any changes or updates.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-fill-out-irs-form-5695-for-battery-storage/
