SOLAR CREDIT

[HOGANTAXES]

I"m in need of help with solar credit carry forward.

my client purchased solar panels in 2020 for 40K. they received the 30% credit on 2020 taxes but nothing carried forward to 2021, or 2022

why? shouldn't their be a carry forward for the remaining? Is it a 2020 glitch? Is all the credit used up? Shouldn't the credit carry for 3 years?!!! I just noticed that tax year 2020 was the only year they received credit. I'm hoping to amend 2021 and 2022 to carry the remaining credit.

any help would be appreciated. they have a lot of tax liability.

thanks,

Hogan Taxes

[Just-Lisa-Now-]

Did they use the entire amount of credit in 2020?  Do you have the 5695 from 2020?  Chances are the credit has been used up in the past 3 years if it wasnt all used in 2020.

[dkh]

What were you expecting to carryforward - part of the 30% ($12,000) or balance of the $40k ?   Your question makes me think you expect additional credits on the $40k.

[HOGANTAXES]

Yes, expecting the 40K to carry. I'm having a total brain fart on this... they received a huge credit in 2020 when purchased. Am i thinking wrong? maybe they've used it all up in 2020? ugh...!! its been one of those days!! thank you for your response! I'm sorry my question wasn't clear. I'm ready for a break!!!

[HOGANTAXES]

My thought were the credit carried for 3 years! hmm, well this would make sense why ProSeries isn't carrying anything forward. I know, i should know this but my brain is just on auto pilot and error check mode! guess im loosing my marbles!!

Tis the Season!

thank you Lisa for your response!

[dkh · Accepted solution]

Credit only for 30% of total cost in year of purchase.   If the 30% credit in year of purchase is not used then credit balance carries forward.    

@HOGANTAXES     This is the time of tax season when I too am at peak burnout. Just past March 15th deadline.  

[HOGANTAXES]

Thank you very much! i'm glad to know i'm not alone! Yessss i was wore out before march 15th! lol. i have never used this forum until this year!!! i appreciate all the helpful folks on here!