Solar Credit Carry Forward

[DaveF1006]

Since the credit is a non-refundable credit, there may not have been enough tax liability this year to apply the credit to.  

To verify this, if you are using Turbo Tax Online:

1. Go go tax tools>tools
2. View Tax Summary
3. Preview my 1040
4. Look on Line 18 on the 1040
5. If the amount is Zero, then there isn't any tax to apply the credit to
6. If the mount on Line 18 is less than the credit, some of it may have been used to zero out line 18 and then the unused remainder is carried over into the next year.

[dystonia1]

It can be carried forward, but how many years.

Many credits like purchase of business equipment can only be carried forward three years.

I only pay $2,000 in fed taxes and the credit is $17,000.

[Critter-3]

And end to the solar credit carryforward has not been posted so as of today it carries forward until it is used up. 

[NCperson]

@dystonia1 - there is no limit to the years to carry forward, but look closely at your tax return, the credit can not bring Line 22 lower than zero - that is what causes the carry forward. 

[ozturkender]

hello,

so here is the thing. I had an EV car, a solar system and an EV charging station all in 2022. greedy 😕

When I file them in TT, EV and solar showed up as supposed to, but EV charging station appeared as $0, most probably b/c of this AMT limitation.

Charging station tax credit, however, comes back when I delete either the EV or the solar. I know that EV tax credit cannot be carried forward, but solar one can. One detail is that, I still have some federal tax due, it's not zeroed out. 

The question is, can I carry forward solar tax credit even though I'm still paying some federal tax, just not to lose the Charging station tax credit? And if the answer is yes, how I'm gonna do it in TT? (it seems that carry forwards happen automatically only when one zeroes out the federal tax debt with credits)

I'd appreciate any help

[Texas Roger]

Sorry I don't have an answer for you. You might try starting a new post with your question so that more people will see it. 

[Critter-3]

@ozturkender 

Credits are used up in a presribed order ... the non refundable ones first  that do not carry forward and then the non refundable ones that do carry over.  Since the EV credits cannot be carried forward those are used up first to allow for the other credits to be used up later.  Review the return carefully to see how these are calculated and used up.  

Also these credits can only negate federal taxes and not anything on the form 1040 below that line like SE taxes.