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posted Feb 28, 2025 11:36:06 AM

We own solar panels and get an amount paid to us each month for production through a MA program. I have a 1099-Misc for this, can my solar panel payment be an expense?

This is through the SMART solar incentive payment

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1 Replies
Expert Alumni
Feb 28, 2025 1:27:45 PM

No.  This amount should be entered as 'Other Income' on your 1040 and not subject to self-employment tax.  Since it is not business income you can't deduct expenses from it.

 

In addition you already deducted the full value of the solar panels when you got a solar panel tax credit in the year that you had them installed.  Deducting them again would be double dipping.

 

@MeghanCAyres