NateTheGrEAt
Expert Alumni

Get your taxes done using TurboTax

It sounds like you probably have enough tax liability to absorb the entire solar credit for most normal sized solar systems within one year, so that's great. 

 

If you adjust your withholding this could allow you to receive the credit in the form of larger paychecks during the year rather than waiting to receive it as a lump sum. 

 

However, if you do this, be sure to change it back to normal at the end of the year so you don't under-withhold the following year. Also, be aware that most state withholding follows federal withholding, so if you're in a state that has a state income tax, this could cause you to under-withhold on state. (Since credit is only a federal credit). You might need to make state estimated tax payments to ensure you don't end up with a large state balance due. 

 

 

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