WOW, it seems I'm not the only one in that situation.
First of all, I'm not a tax expert that is why I use Turbotax. In 2019 I filled form SC1040TC to for federal and state. For 2020 the amount for federal was carried over and it shows in 2019 what will carry over. I expected the same happen to state. If not I was expecting to get a message on how I have to apply and calculate my carry over in state - this wasn't the case. So there is clearly something that has to be worked on, either an explanation has to be added on how you have to file your solar tax credits for state or incorporated in the program for state in the same way as it exists for federal. I spent two hours on the phone with Turbotax "experts", even a "manager" was included in the call and after reversing my incorrect numbers on form SC1040TC in state (we just deleted form SC1040TC) they both said it is automatically applied and carried over - but it is NOT and both where NOT able to show me where it is written as a proof.
So, here is what I understood it will work for 2020:
Turbotax doesn't automatically carry over your solar tax credit for state. You have to use form SC SCH.TC-38 to manual do the calculation on this form yourself. After calculating you have to add the amount in line 10 to the form SC1040TC in your state tax. Unfortunately when I put the numbers in I wasn't able to efile anymore but was charged for (needs fixing too). So I reversed it, deleted form SC1040TC in state and efiled it without the tax credit applied. Everything worked and state accepted my file. When my refund is in the bank I have to go back to Turbotax and amend my state filling to include SC1040TC and mail it to the IRS (including all requested documents, like W2's, federal etc.) for correction.
This is far from convenient and clearly a lack in Turbotax that needs to be fixed. I hope this helps others as well. If I have this still wrong, please correct me.
