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Why is my solar tax credit not taking my tax to zero?
We purchased a $12,000 solar system for our home. Our federal tax liability before I enter this deduction is $764. When I enter this deduction our tax liability is reduced -$690 and becomes $74, with a $2,910 credit to carry forward. Why is the tax due not reduced to zero?
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June 4, 2019
2:08 PM
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State tax filing
Open your form 1040 in Forms Mode.
Look at lines 57-to-67. Those taxes are assessed no matter what your tax is on line 56.
For example, people with some Self-employment income...greater than $400, still have to pay SS&Medicare taxes. A 10% penalty for an early withdraw from a retirement fund, still have to pay that penalty. But there are 10 lines of other stuff, as noted above.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
June 4, 2019
2:08 PM
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State tax filing
Thanks! I am self employed and now realize where the tax liability was.
June 4, 2019
2:08 PM