Solar panels. TurboTax actually calculates a home energy tax credit of $6000 and applies only $29.toward reducing the federal tax due.
We can't see your tax return to know why TurboTax is only deducting a partial solar credit, however there are times when you can't take the full credit in the current year.
If your credit can be carried forward to next year, we'll do that for you.
Under the Residential Energy Efficient Property Credit, you can get a federal tax credit for installing alternative energy equipment, such as solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, and fuel cell property.
If you made energy efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you'll be able to claim the Nonbusiness Energy Property Credit for 10% of amounts paid for qualified energy efficiency improvements, up to a lifetime cap of $500 or fixed dollar amounts ranging from $50 to $300 for energy efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.
Related Information:
I added energy efficient windows to my home recently. The total cost was around 42,000. I paid 22,000 in 2019 at the start of the job and 22,000 in 2020 upon completion. I received an energy credit of 200 on my 2019 return but when I entered the 22,000 for 2020, it says my credit is 0. Why? Have I received the maximum credit over a lifetime? Can this be verified?
You can't take split the cost between two years. It is one credit for one window installation. The windows are not yours until fully paid for. You need to amend 2019 and include the entire amount in 2020.
In 2018, 2019 and 2020, an individual may claim a credit for (1) 10 percent of the cost of qualified energy efficiency improvements and (2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during the taxable year (subject to the overall credit limit of $500).
Under the Residential Energy Efficient Property Credit, you can get a federal tax credit for installing alternative energy equipment, such as solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, and fuel cell property.
If you made energy efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you'll be able to claim the Nonbusiness Energy Property Credit for 10% of amounts paid for qualified energy efficiency improvements, up to a lifetime cap of $500 or fixed dollar amounts ranging from $50 to $300 for energy efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.