jmh_in_hnl
Returning Member

Deductions & credits

We purchased a PV solar energy system in 2020. It cost around $31,000, and the 26% rate for the tax credit equals roughly $8000. When I entered all of the info into Turbo Tax, it appears they added all $8000 to my federal refund. (Actually, we owed around $1500 so the federal refund now shows $6500). If this is intended to be a tax credit, why does it show on TT as a refund, when it should show $6500 as carryover tax credit for future years? I am worried if I file it this way, the IRS will accuse me of fraud when it is TT that calculated it that way.