@dmoe54
If you have solar credits to use, then the tax software will use that credit to reduce or eliminate your calculated tax liability....irrespective of whether or not you have tax withheld when your pension is distributed. The tax liability is the tax calculated before considering any tax prepayments you might have made thru withholding or paid-in quarterly estimates.
ie. the tax credit is applied the calculated tax BEFORE your withholding is considered. Thus:
1) if your Solar credit eliminates the calculated tax, then you get any withholding back as a refund.
2) IF you have no withholding, and the solar credit eliminates the calculated tax, then you don't owe, nor get any refund...and any excess credit is just carried over to be used next year.
3) I you have no withholding, and the calculated tax is not eliminated by the solar credit, then you may owe some taxes when you file.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
