Form 5695

[Howard18]

Hello,

I completed IRS Form 5695 for my solar energy credit.  Line 15 of the form is the Residential Clean Energy Credit.  Line 16 of the form is for the credit carryforward to 2024.  The box states that if line 15 is less than line 13, subtract line 13.  Line 15 and line 13 are the same number (i.e. Residential Clean Energy Credit).  Thus, the form is showing I have no carryforward.  However, the return is showing a refund for the difference between my Residential Clean Energy Credit and my tax liability.  This is a nonrefundable credit, meaning I am not allowed to get a refund for the credit.  The credit can only be used to offset a tax liability.   How do I do a carryforward of my remaining credit?  I was thinking my turbo tax deluxe software would deal with this.  However, it is incorrectly showing a refund.  I double checked my input and related forms and everything is correct.  Is this an issue with the software?  Please assist.

Thanks,
Howard

[DawnC]

TurboTax is handling this credit correctly.

• Line 13 is the total amount of your credit.    
• Line 14 is the max you can take, taking into account your tax liability
• Line 15 is the smaller of the 2 numbers above - in your case, the amount on Line 13 (full amount of your credit)

Since you are getting the full credit now, there is no carry forward.   You still have a tax liability after applying the full credit.    The credit is non-refundable, which means it can't take your tax liability past $0.   If you look at line 22 of Form 1040 - you still have tax liability even after taking the credit.   You are getting a refund, not because of the credit, but because you had more withholding and payments than your tax liability, even after applying the full credit.   Based on what you told me, the refund is legit.

[Howard18 · Accepted solution]

Thank you for your explanation.  I appreciate your assistance.