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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.
- Look on your 1040 and compare lines 18, 20,and 24.
- Line 18 should show an amount of tax liability before the solar credit was applied.
- Line 20 should show the amount of the solar credit. There may be other credits that were reported form Schedule 3.
- Line 24 should be the result of subtracting credits and adding additional taxes from Schedule 2, which appear on line 23.
- Check to see if the full amount of the credit is applied on line 20.
- 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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‎January 26, 2023
7:35 PM