Looking at installing solar. What is applied first, child tax credit or solar tax credit. And would I still get a refund over my total federal income tax paid?

[Bsch4477]

The solar energy credit is not refundable so it will only help you if you have a tax liability. 

[TomD8]

The Child Tax Credit is refundable, if you qualify.  See Questions 10-12 in this IRS reference for a full explanation:

https://www.irs.gov/credits-deductions/tax-year-2021-filing-season-2022-child-tax-credit-frequently-....

[NCperson]

@youngblood1983 - the solar credit is 'non-refundable' which means Line 22 of your tax return can not go below zero.

The child tax credit (CTC) is a little complex.  I think @TomD8 gave you a response that is accurate for 2021, but it won't be for 2022.  2022 CTC rules are going back to pre-2021 tax rules, unless Congress does something by the end of the year.  Part of the CTC is refundable (you get it regardless of your tax), but part is non-refundable (you can't have Line 22 go below zero) 

so your tax less the child tax credit (non-refundable portion), less the solar energy credit can not be less than zero. Look at lines 16-22 of Form 1040 and you'll see what I mean.

whatever portion of the solar tax credit goes unused is carried over to the next tax year.  That is not true of the child tax credit, so the child tax credit (non-refundable portion) gets used up first 

I can't answer the question about 'refund' as that is dependent on a number of factors,    The way to look at this is to question your Tax Liability on Line 22.  The Tax liability, the refundable credits and your withholdings impact the 'refund'.

does that help?

[TomD8]

@youngblood1983 --

@NCperson is correct.  The IRS reference I gave you applies only to tax year 2021.  This web reference sums up what changes in 2022:

How much is the Child Tax Credit and what changed in 2022?

Unless legislation is passed, some of the temporary changes that were made to the Child Tax Credit in 2021 will not apply in 2022. Some of the changes from last year include:

• The credit amount is reduced to $2,000.
• No portion of the credit is available in advance.
• $1,500 per child is the maximum allowable refund for individuals with no tax liability.

Before 2021, the Child Tax Credit was not available for children that were 17 at the end of the tax year. In 2022, children that are 17 or younger at the end of the tax year qualify for the Child Tax Credit. 

https://www.rocketlawyer.com/family-and-personal/personal-finance/personal-taxes/legal-guide/2022-ch...?