Where do you put SREC income from a solar array?

When reporting income from Solar Renewable Energy Credits (SRECs) to the IRS, you should use the gross value of the income received from the sale of SRECs. This means you report the total amount before deducting any brokerage fees or other expenses.

 

Even  you don't receive a 1099-MISC from the brokers, you can still report this income under "Other Reportable Income" on your tax return:

 

Steps to Report SREC Income in TurboTax without a 1099-MISC

 

1. Open your return in TurboTax.
2. Click on Income
3. Scroll to bottom Income screen and click Add Income
4. Scroll down to the Less Common Income next to Miscellaneous Income, 1099-A, 1099-C and select form
5. Go Back to Income screen and click on pencil next to Miscellaneous Income, 1099-A, 1099-C and
6. On the Miscellaneous Income screen, scroll down and select Other reportable income.
7. When asked, "Any Other Taxable Income?", click Yes.
8. Enter a description such as "SREC Income" and the total amount received from the sale of SRECs.

For more detailed guidance, you can refer to the IRS's Frequently Asked Questions about Energy-Efficient Home Improvements and Residential Clean Energy Pro.

 

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