Residential Energy Credit calculated incorrectly?

[Mschultz80]

I purchased solar panels in 2018 and deducted part of the cost on them on my taxes. My return was held up and I didn’t end up getting the full amount TurboTax said I would get back because between the Child Tax Credit and the Energy Credit it calculated that I should get back more than I paid in. Apparently you can’t get more back for the Residential Energy Credit than you paid in. I accept this but when I did my taxes for 2019 and included the carry-forward for the Solar Panels it happened again. Why is it calculating this way? It basically says I should be getting $1400 more back than I put in...again. 

[DianeC958]

The Residential Energy Credit is a non-refundable credit.  It will pay any tax that is due, but any amount left over carries to the next year.

The amount of your refund is based on money you had withheld for Federal taxes and any other credits that are refundable.

Link to Federal Tax Credit for Residential Solar Energy

[Mschultz80]

Right, I totally get that but by that logic the tax return shouldn’t say I should be getting more money than was withheld, but it does. 

[JosephF8]

You could be if you have a refundable tax credit. In your case that could be the refundable portion of the Child Tax Credit. This is called the Additional Child Tax Credit and can be as much as $1400.

[Tjimmeske]

Hello,

It looks like TurboTax is incorrectly calculating the residential energy credits as equaling 30% of the value of installation costs this year. This rate had already been reduced to 26% for 2020. I don't want to have to purchase tax advice services just to tell them that I think this is in error. Do you have any advice?

Tim

[Tjimmeske]

Ah. actually, it seems this rate is being calculated correctly, it's simply the description for solar electric costs that is outdated:

"Enter the amount you paid for any property that uses solar energy to generate electricity for use in your home. The home does not need to be your main home. However, you may not include costs allocable to a swimming pool or hot tub.

The tax credit is 30 percent of the costs for assembly, preparation, and installation as well as piping and wiring."

Should be 26% for 2020, 2021, and 2022.