I get a tax refund every year and this year I got solar at my home. The big selling point is the tax credit but all the info I see on this is for people who owe taxes every year. I don't ever owe, and I always get a refund so will the tax credit benefit me at all?
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The solar credit is a "nonrefundable" tax credit, which means you won't receive any benefit if you already receive a tax refund. There's an interesting (unofficial) overview of the solar credit process at:
http://solaroutreach.org/wp-content/uploads/2015/03/ResidentialITC_Factsheet_Final.pdf
A little late to the party, but....
If you have any tax withheld during the year, you will definitely benefit from the solar credit. The credits will offset what you owe, before accounting for the withholding. If your computed tax, based on your taxable income, is less than the credits then:
1. your taxes will be zero and all your withheld amount will be refundable and
2. any solar credits in excess of the computed tax will be carried forward.
This is looking only at the solar credit.
@uherrick if you already filed the 2020 return you're going to have to file an amended return after the original is fully processed unless the IRS rejects the return. if the 2020 return is rejected you can fix and resubmit.
Thanks uherrick. I received a refund last year and my solar credits were applied. The key was, I owed money before the tax calculation. I looked all over for the answer and yours was spot-on.
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