If I have a credit of $7760 carried forward for 2019 for solar panel installation in 2018, why is my credit $0 and why do I still have federal tax due?

[Anita01 · Accepted solution]

Your credit is zero because you can only use up to the amount of your tax liability and apparently you have none.  Tour return shows you are using Self-Employed, so you would have a Schedule C.  Any Self-Employment tax on the profit in your Schedule C would still be owed.  That tax cannot be reduced by credits, even if your regular income tax is reduced to zero.  Another tax that cannot be reduced through credits is the 10% Early Distribution tax on a retirement plan, in case you have that on your return too.