isaac_alba
Returning Member

Full solar tax credit being applied by TurboTax and is now showing a sizeable refund. I thought it was only supposed to cover tax liability?

The last bit of tax info I entered into TurboTax this year was related to the solar panels we had installed in 2020.  Right before entering this info, we *owed* ~$1600 (Federal).  Based on the cost of the solar install, we qualified for a credit of ~$4600.  My understanding of the solar tax credit is that only the amount needed to cover our tax liability would be applied.  Instead, once I entered the details related to the solar panel install, Turbotax quickly shot our federal *refund* up to around $3000 (i.e. applied our full solar install credit instead of simply covering the tax liability).  I don't think this is right, but I'm not sure how to change it.  I mean, I'd like $3k as much as the next person, but from my reading of the solar tax credit, this isn't how it should work.  Help?