home energy tax credit

[P_Spencer]

I purchased Solar Panels for my home in 2019. When I enter my information it tells me that I get no tax credit but have a carryover. The arrangement that was made with my lender was that the 30% tax credit I was to receive would be used to cover the initial short term loan that was issued. Is there a way that my tax credit can be directed to my lender. I'm very confused and panicking a little. I don't understand why they would make this arrangement if that isn't the way it works, please advise.

[JotikaT2]

No.

Your tax credit can only be used to offset any tax liability. 

If you do not have taxes still due, you will not get the entire energy credit refunded to you.  The excess credit will be carried forward to your 2020 tax return. 

You can look at your current tax liability by doing the following: 

1. In the black panel on the left, select "Tax Tools" 
2. Then Select "Tools" below Tax Tools 
3. Under the Other helpful links section, select "View Tax Summary" 
4. Review the line which says "Total Tax".  If this amount is $0, then you have no tax to offset the credit with. 
5. Once you are done reviewing this information, click "Back" on the black panel on the left to get back to the interview screens. 

Please see the attached for additional information. 

Residential Energy Credit Instructions 

[SteamTrain]

Beyond that....make absolutely sure you've entered ALL of your income and tax withholding too.   Entering the credit before all income has been entered may give you a false refund reading due to that carry-forward issue.

But if you never paid in any Federal withholding during 2019, nor any Federal estimated taxes, the Credit could just be covering the taxes owed (with some left over), and still no refund.