Credit Carry Foward Issues

Forum|Forum|4 years ago
May 3, 2022
2 replies
0 views

I purchased Solar for my house in 2020 resulting in a little over 11K credit. Turbo Tax has carried it forward twice now only this year it has deducted $2763, now indicating that I am only owed $8378. The deducted funds did not end up in my total refund amount, so I am wondering what Turbotax has done?

Next question, when am I going to receive these funds? what if I don't want to carry over anymore?

Credit

DoninGA

Level 15

The solar credit of $2,762 reduced your tax liability to zero therefor the remaining credit is carried forward to the next tax year.

You do not have a choice of not having the credit carried forward. The tax code requires any remaining solar credit be carried forward.

NCperson

Level 15

look at line 22 - that line can't be less than zero, causing the carry -forward

the tax credit is what is called a 'non-refundable credit'; the IRS won't give you money for the credit, but will reduce the tax liability so that line 22 gets to zero.