Many people who sell electricity from their solar panels receive a 1099 from the power company. If
you have "Non-employee compensation" (Box 7 of a 1099-MISC),
according to the IRS it is considered income from self-employment. You are
considered to have a self-employed "business" and you are the
"owner". TurboTax will help you report it as Business Income on
a Schedule C or C-EZ.
If you have a Box 7 entry, the only other recourse is contacting the payer to reclassify the income and issue a corrected 1099-MISC to yourself and the IRS. Otherwise, enter the 1099-MISC exactly as the paper form reads.
The good news regarding this is, if you are in the "business" of selling SREC's, you can deduct ordinary and necessary expenses of the business. One may be the depreciation of the solar panels.
Follow these steps
to enter your Business Asset:
1.
Click the "Business" tab in
TurboTax,
2.
Click "I'll choose what I work on."
3.
Scroll to Business Assets
4.
Click Start on Assets Being Depreciate
5.
Follow the instructions on screen to enter the
details of the asset
