Why am i not getting full credit for solar energy tax credit. over 6,000 was rolled over to next year - I want to take it all this year.

Forum|Forum|6 years ago
June 6, 2019
4 replies
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I planned to take my full solar energy tax credit this year, but only $3,000~ got applied and $6,000~ got rolled over to next year leaving me with a hefty tax bill and penalties. Why was I not allowed to take the full credit?

TurboTax Home & Biz Windows

Best answer by Texas Roger

Answered in comments.

Texas Roger

Employee

The solar credit is a non refundable credit meaning it is limited by your tax liability. The credit you can get is equal to the amount of tax liabililty that it can offset. What is your tax liability on line 11 of form 1040?

steph_Author

Ah. Thank you. I was led to believe it was based on my total tax DUE.

Texas RogerAnswer

Employee

Answered in comments.

pc-wizard

As of January 17, 2025, any amount you do not use is lost. You can no longer carry over left over credits to the next year. This is from the FAQ on the IRS website:

Q1. May a taxpayer carry forward an unused credit to a later taxable year? (updated Jan. 17, 2025)

A1. No. A taxpayer may not carry the credit forward. Thus, if a taxpayer does not have sufficient tax liability to claim all or a portion of the credit for a taxable year, the unused amount of the credit may never be claimed.

So if you're a middle class American, you will never get all off the Solar Tax credit. We don't make enough money. To get the full amount, you have to be rich.

DoninGA

Employee

@pc-wizard wrote:

As of January 17, 2025, any amount you do not use is lost. You can no longer carry over left over credits to the next year. This is from the FAQ on the IRS website:

Q1. May a taxpayer carry forward an unused credit to a later taxable year? (updated Jan. 17, 2025)

A1. No. A taxpayer may not carry the credit forward. Thus, if a taxpayer does not have sufficient tax liability to claim all or a portion of the credit for a taxable year, the unused amount of the credit may never be claimed.

So if you're a middle class American, you will never get all off the Solar Tax credit. We don't make enough money. To get the full amount, you have to be rich.

That is only for the Energy Efficient Home Improvement Credit

NOT the Residential Clean Energy Property Credit