Claiming the Solar Tax Credit, should I change my deductions?

Forum|Forum|1 year ago
July 15, 2024
1 reply
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Hey guys. So we always get a tax refund at the end of each year by claiming no dependents even though we have a few.

If we get a solar system installed and to qualify for the Solar Rebate should I change my filing status so I would owe money, in order to claim the credit?

Thank you!

Best answer by Bsch4477

Tax liability is the amount of tax that you have to pay before that amount is reduced by credits and withholding. In your case you would just get more of your withholding back.

Bsch4477

Employee

If you have a tax liability the credit is deducted from that amount. You don’t have to change anything.

TwomonstersAuthor

So does tax liability mean that one would owe money at the end of each year? Sorry taxes make my head spin when you get this in-depth.

Every year we get money back on our taxes, so we owe zero at the end of each year because we have our jobs take out more than required just so we don’t owe. Having a to write a big check to the IRS is a scary thought. Thanks!

Bsch4477Answer

Employee

Tax liability is the amount of tax that you have to pay before that amount is reduced by credits and withholding. In your case you would just get more of your withholding back.