Is the income I received as a utility refund because of excess generated electricity of solar panels.taxable income?

[bjcharles]

Utilities refund because of solar panels that generated excess electricity than I used during the year.  $239.32

[ChelsiE2 · Accepted solution]

Yes this income is taxable.  You need to report it as Other Income (not subject to self employment tax) on Line 21 of your Form 1040.

[jerrihead]

Does this mean that you can depreciate the solar panels that were installed to create the excess electricity? Does this also mean that the activity is not passive because you do all, or nearly all, of the work in the activity? Can you deduct any other expenses incurred that are necessary and ordinary to generation of this income?