☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jul 26, 2023 1:27:56 PM

Can I postpone a Federal Income Tax credit to another year

I'm planning on installing energy efficiency appliances next year. My income that year will be solely based on capital gains that I expect to be below the threshold for a married couple so the federal tax rate will be 0.  Is it possible to delay taking the energy efficiency credit to the following year when my income will come from a retirement account withdrawal?

0 4 1000
1 Best answer
Level 3
Jul 26, 2023 3:45:55 PM

The Energy Efficient Property tax credit must be taken in the year the property is installed and placed in service.

You cannot delay the tax credit.

4 Replies
Level 15
Jul 26, 2023 1:31:47 PM

The credit can only be taken in the year the system was installed and placed in service.

Employee Tax Expert
Jul 26, 2023 1:33:34 PM

Hi acwgolfer!

You must claim the credit in the year the energy efficient appliances are installed, you can't defer it.  Some other energy credits are taken over three years, but they begin in the year of installation. 

 

Here is a great reference regarding energy efficient credits:

https://www.irs.gov/credits-deductions/frequently-asked-questions-about-energy-efficient-home-improvements-and-residential-clean-energy-property-credits-timing-of-credits

 

Hope this helps!

Cindy

 

Employee Tax Expert
Jul 26, 2023 3:41:41 PM

You could delay the credit by choosing to delay the installation of the appliances until the year when you want the credit. But that's the only way.

Level 3
Jul 26, 2023 3:45:55 PM

The Energy Efficient Property tax credit must be taken in the year the property is installed and placed in service.

You cannot delay the tax credit.