Why is my home energy credit being carried forward

7 replies
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In 2017 i bought(paid in full) solar system and had it installed. On my 2018 taxes it said energy credit will be carried forward to 2019. Now I’m doing my 2019 taxes and said the double the original amount (little over $13000) will be carried to 2020. Why is that?

Critter

Level 15

Look at the form 5965 ... did you accidentally enter the solar credit again this year ?

Dawol Author

Level 2

Negative, i clicked update on energy credit (using desktop home and business) and it said 13k will be carried over to next year.

JotikaT2

Alumni - Expert

It depends.

Your tax credit can only be used to offset any tax liability.  Any excess credit over your tax liability cannot be refunded as this is a nonrefundable credit. However, it can be carried forward.

You can look at your current tax liability by doing the following:

In the black panel on the left, select Tax Tools
Then Select Tools below Tax Tools
Under the Other helpful links section, select View Tax Summary
Review the line which says Total Tax.  If this amount is $0, then you have no tax to offset the credit with. If there is an amount shown, then part of your credit may be used to offset that tax liability.
Once you are done reviewing this information, click "Back" on the black panel on the left to get back to the interview screens.