topic Can I use the Inflation Reduction Act solar residential tax credits (30%) to pay for taxes resulting from moving funds from my traditional IRA to my Roth IRA? in Retirement tax questions

Can I use the Inflation Reduction Act solar residential tax credits (30%) to pay for taxes resulting from moving funds from my traditional IRA to my Roth IRA?

Insagn — Tue, 10 Mar 2026 07:27:03 GMT

I am retired and have no earned income and without doing a Roth conversion I will have no tax liability in 2022. I also have made estimated tax payments this year to pay the Roth conversion taxes.

Re: Can I use the Inflation Reduction Act solar residential tax credits (30%) to pay for taxes resulting from moving funds from my traditional IRA to my Roth IRA?

NCperson — Wed, 07 Dec 2022 00:03:12 GMT

yes -

look at Form 1040

https://www.irs.gov/pub/irs-pdf/f1040.pdf

your tax will be presented on Line 16.

the solar credit will be presented on Line 20

Line 20 is subtracted from Line 16, but can not go below zero.

if Line 20 (the solar credit) is greater than Line 16 (the tax), that difference can be carried foward to the following year.

Re: Can I use the Inflation Reduction Act solar residential tax credits (30%) to pay for taxes resulting from moving funds from my traditional IRA to my Roth IRA?

Opus 17 — Wed, 07 Dec 2022 18:39:35 GMT

If you have no other taxable income, doing a Roth conversion to create taxable income and an income tax bill is a good way to benefit from the solar credit. Remember, however, that doing a Roth conversion will also make up to 85% of your social security benefit taxable (if you are taking your SS benefit). So it's a more complicated calculation to figure out how much you can convert.

Re: Can I use the Inflation Reduction Act solar residential tax credits (30%) to pay for taxes resulting from moving funds from my traditional IRA to my Roth IRA?

Insagn — Wed, 07 Dec 2022 21:56:45 GMT

Yes I am aware of having to pay taxes on more of my Social Security income. It will take me 4 to 5 years to use all of the tax credit to minimize paying taxes on more of my Social Security income.