Question

Solar Tax Credit

Forum|Forum|4 years ago
February 7, 2022
3 replies
0 views

The federal tax credit for solar seems to be calculating incorrectly within Turbotax. I read that the federal credit for a new solar system installation for 2021 is 26% of the cost. I should also have a credit for 26% of the cost of my energy efficient home improvements including windows, doors and metal roof. Can I manually change this myself? or how does this get fixed?

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SteamTrain

Employee

No...the doors, windows, and roof do not have a 26% credit.

You enter them separately on the Energy Savings Improvements page (assuming all met the energy savings requirements), but together, they are likely subject to a credit of 10 % of the material costs...but even then, there is an "up-to" max of $500 as a credit all taken together for those particular items. So your credit for all of them together may only be $500.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

Rick19744

Employee

And just to expand on @SteamTrain reply, the limitation ($500) takes into account all credits allowed to the taxpayer for tax years ending after December 31, 2005.

So if you have previously taken any of these credits in the past, you may have reached your maximum limitation.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.