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January 28, 2025
Question

Solar panel tax credit taken but panels subsequently removed -ould

  • January 28, 2025
  • 1 reply
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We had solar panels installed and took the solar tax credit in the year in which the panels were installed, paid for, and made operational.  The panels never worked as intended and the company could not address the issue, so they agreed to remove the panels and give us ‘most’ of our money back.  How do I make this right with the IRS?  I don’t want to do an amended return for the prior year, because we did indeed meet all of the qualifications for taking the solar credit. But I haven’t found anything in the IRS directives, instructions, or other materials to indicate what to do in this situation.

    1 reply

    January 29, 2025

    There doesn't seem to be any way to add the credit back in a future year. The best course of action would be to amend the return in the year the credit was taken. You can do that for free in TurboTax by logging into your program where you will see an amend return option on your home page.

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