I am retired with moderate fixed income and expenses. I started working on my 2022 tax return. After entering income and expenses, I started exploring taking the standard deduction versus using itemized deductions and the impact on any credit I may be allowed from installing PV Solar Panels on my home in 2022.
Based on my income, using the standard deduction TurboTax shows I have no tax liability, so I am not eligible for any solar credit. Using itemized deductions, which are a third less than the standard deduction, I do have a tax liability. This liability is offset by a portion of the solar credit for 2022 with the rest rolling over for future years. In both cases, I get a refund for the same about based on money I had withheld throughout the year.
Itemized deductions seem to be the way to go. This allows me to utilize at least a portion of the solar credit. Is this approach allowable under IRS rules?
Thank you for whatever help or direction you can provide.
