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February 11, 2024
Question

I just got solar panels last year… I see the NY State solar credit on my returns but the Federal solar credit that was there is no longer reflected after I filed ?

  • February 11, 2024
  • 1 reply
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Before I filed it was there and both state and federal solar credit was reflected in the return .. After I filed state is present with the Associated form but federal is not?

1 reply

DawnC
Employee
February 12, 2024

A Solar Energy Tax credit is a nonrefundable credit.  A nonrefundable credit essentially means that the credit can’t be used to increase your tax refund or to create a tax refund when you wouldn’t have already had one. In other words, your savings cannot exceed the amount of tax you owe. For example, on your 2023 tax return, if the only credit you’re eligible for is a $500 Child and Dependent Care Credit, and the tax you owe is only $200—the $300 excess is nonrefundable. This means that the credit will eliminate the entire $200 of tax, but you don’t receive a tax refund for the remaining $300. 

 

Check Schedule 3 of Form 1040 and look at line 5a for any Solar Tax Credit.  If you were not able to take the credit, find Form 5695 in your return.   You will see the amount of credit you were allowed on Line 15 and any amount you could not claim this year will show as a carryforward on Line 16.   You can use the carry forward amount next year if you have a tax liability.

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