Not necessarily, the Residential Clean Energy Credit is indeed nonrefundable, which means it can’t give you back more than the total tax you actually owe for the year. However, the reason TurboTax is...
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Not necessarily, the Residential Clean Energy Credit is indeed nonrefundable, which means it can’t give you back more than the total tax you actually owe for the year. However, the reason TurboTax is likely showing you a refund is that the credit has wiped out your tax liability, which now allows the IRS to send back the money your employer already withheld from your paychecks throughout 2025 (or estimates you paid).
To double-check this, you can look at your 1040 summary (Tax Tools on the left of your screen, choose Tools, then View Tax Summary) to see if your Total Tax line is now at zero; if it is, any leftover portion of your solar credit will automatically carry forward to help you out on your 2026 return.
TurboTax generates Form 5695 as you answer those energy questions, so even if you don't see the form itself in the online view, it is part of your return. Once you have paid, you can view the entire return by selecting Tax Tools from the left-hand menu, then select Print Center, choose Print, save or preview this year's return, and scroll to 5695.