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Do I enter the amount I paid for my solar panels in the Solar electric costs field?

I got solar installed in Nov 2020 and I am not exactly sure where I need to enter the cost of the of the solar in Turbotax for the credit. Does it belong in the Solar electric costs field, in the Enter Any Additional Energy-Efficient Improvements page?

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Accepted Solutions
Cynthiad66
Expert Alumni

Do I enter the amount I paid for my solar panels in the Solar electric costs field?

To claim the credit, you must file IRS Form 5695 as part of your tax return; you calculate the credit on the form, and then enter the result on your 1040.  Here's how:

 

To claim the solar credit, please follow these steps:

  • In TurboTax, open your tax return
  • Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
  • Scroll down to All Tax breaks, locate the section Your Home and click on Show more
  • Click Start next to Home Energy Credits (see screenshot)
  • Follow the interview to enter your information.

Installing alternative energy equipment in your home can qualify you for a credit equal to 30% of your total cost.

  • The full credit is available through the end of 2019. After that, the percentage steps down and then stops at the end of 2023.
  • Qualifying equipment includes solar-powered units that generate electricity or heat water.
  • The credit is only available for improvements you make to your residence. This can apply to a second residence as well.

As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income. Other than the cost of the system, there's no limit to the dollar amount of the credit.

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5 Replies
Cynthiad66
Expert Alumni

Do I enter the amount I paid for my solar panels in the Solar electric costs field?

To claim the credit, you must file IRS Form 5695 as part of your tax return; you calculate the credit on the form, and then enter the result on your 1040.  Here's how:

 

To claim the solar credit, please follow these steps:

  • In TurboTax, open your tax return
  • Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
  • Scroll down to All Tax breaks, locate the section Your Home and click on Show more
  • Click Start next to Home Energy Credits (see screenshot)
  • Follow the interview to enter your information.

Installing alternative energy equipment in your home can qualify you for a credit equal to 30% of your total cost.

  • The full credit is available through the end of 2019. After that, the percentage steps down and then stops at the end of 2023.
  • Qualifying equipment includes solar-powered units that generate electricity or heat water.
  • The credit is only available for improvements you make to your residence. This can apply to a second residence as well.

As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income. Other than the cost of the system, there's no limit to the dollar amount of the credit.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Do I enter the amount I paid for my solar panels in the Solar electric costs field?

Didn’t answer the question. Your turbo fills out the 5695. We want to know where to put total in solar electric cost solar water heating cost geothermal heat pump, etc. Where does it go?

DaveF1006
Expert Alumni

Do I enter the amount I paid for my solar panels in the Solar electric costs field?

To claim, follow the directions Cynthiad66 has already outlined for you. 

 

To claim the solar credit, please follow these steps:

  • In TurboTax, open your tax return
  • Click on Federal in the left-hand column, then on Deductions & Credits on top of the screen
  • Scroll down to All Tax breaks, locate the section Your Home and click on Show more
  • Click Start next to Home Energy Credits (see screenshot)
  • Follow the interview to enter your information.

As you navigate through the section, you will arrive at a screen that looks like the screenshot I provided below.  You can enter your information here in this screen.

 

 

 

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ysandee
New Member

Do I enter the amount I paid for my solar panels in the Solar electric costs field?

Hi,

For Solar Panels installation at my home, I paid some advance money in Dec 2021 and rest of the bulk money paid in April 2022 after System Installation is complete. When filing for 2021 taxes, can I claim that advance money amount, which was paid towards Solar electric costs in 2021?

 

 

Do I enter the amount I paid for my solar panels in the Solar electric costs field?


@ysandee wrote:

Hi,

For Solar Panels installation at my home, I paid some advance money in Dec 2021 and rest of the bulk money paid in April 2022 after System Installation is complete. When filing for 2021 taxes, can I claim that advance money amount, which was paid towards Solar electric costs in 2021?

 

 


Only after the installation is completed can you apply for the tax credit.  Since it was not completed until 2022 you cannot claim the credit on the 2021 tax return.

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