DaveF1006
Employee Tax Expert

Deductions & credits

Yes, this is a rare phenomenon because it seems like it is giving you a refundable credit. Perhaps we need to explore certain line items on the 1040 to see if the credit is being applied correctly.

 

  1. Look on your 1040 and compare lines 18, 20,and 24.
  2. Line 18 should show an amount of tax liability before the solar credit was applied.
  3. Line 20 should show the amount of the solar credit. There may be other credits that were reported form Schedule 3.
  4. Line 24 should be the result of subtracting credits and adding additional taxes from Schedule 2, which appear on line 23.  
  5. Check to see if the full amount of the credit is applied on line 20.
  6. Also check line 24 to see if that amount has a balance. If it does, then this was calculated correctly. if it is zero, check the math in the line above line 24 to see if the calculations are correct.
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