Solar panel credit 2017 received.

[dcano]

Can I use solar panel cost in 2019 tax returns, if I received a credit in 2017 tax returns? I do have a $57K TAX Credit on this years taxes since over 70 & withdrew 401 K funds. 

[JotikaT2]

It depends.

As long as they improvements made to your principal residence, you can still take a credit for solar panels installed in 2019.  

Please note, your credit can only be used to offset your tax liability.  Any unused credit will be carried forward for 2020.

Solar energy credit

[dcano]

Solar panels installed in 2017, not in 2019, can I still take additional credit in 2019/?

[dcano]

tax reliability is huge in 2019, since withdrawal from 401K over 70.  

[BillM223]

I am not sure I understand.

You installed the panels in 2017. Did you take a tax credit for them in 2017?

If you did, did you have unused credit that you carried over to 2018?

If you were unable to use all of the credit in 2018, then you can use the carryover in 2019 to the extent that you have enough taxes assessed.

"tax reliability is huge in 2019, since withdrawal from 401K over 70." Are you saying that you have a huge tax liability in 2019, because of a large distribution from your 401(k)?

If you did not take the credit for the panels in 2017 (the year you installed them), then you will need to go an amend your 2017 return, then if you have a carryover of unused credit, amend your 2018, and if you still have carryover of unused, you can apply that to 2019. But you can't just apply the whole thing to 2019 if you installed them in 2017.

[dcano]

Thank you so much for your answer.  Yes, I did take a credit in 2017 and received over 12K in tax credit.  So, I guess, I can't take a credit for my Fed Taxes.  Anyway, I believe I can take credit in South Carolina.  I received $3500. credit on my 2017 South Carolina taxes.  Due so some Turbo fax software error, I didn't receive the $3,500. credit on my South Carolina 2018 taxes on the SC1040TCform, Turbo tax only calculated only $48.xx.  line 17 on form, i.e. Enter the tax from SC1040 line 10 which was $48.xx.  According to the form & Turbo software, line 18 said, "enter the lesser of line 16 or 17.  In this case, line 16 was $3,500. and line 17 was $48.xx.  So, in theory, I didn't get the $3500.xx tax credit on my South Carolina Taxes.  On this 2019 SC credit taxes, I get the final credit of $3160.xx   (Total credit in SC is $3,5K for 2017, second yr. $3,5K for 2018 & final  credit 2019 $3,160.xx)  Max $10,160 total on SC solar project.  In any case, I believe I can receive $3,5K next year, since I didn't receive it in 2018.  Opinion will be greatly appreciated.  many thanks.  

[BillM223 · Accepted solution]

"(Total credit in SC is $3,5K for 2017, second yr. $3,5K for 2018 & final  credit 2019 $3,160.xx) "

Are you saying that the SC calculation was $3.5k for 2017, would be $3.5k for 2018, and would be $3,160 for 2019? I imagine the only limit that applies is the 2017 limit. That's the amount that carries over.

Yes, the SC solar energy credit appears to carry over for up to ten years.

I assume that the $48.xx was one-half of your tax liability in 2017, right?

Why didn't you receive the tax credit in 2018? Was it not entered or did you not have enough assessed tax in 2018 either?

Well, in any case, you should be able to take the tax credit eventually.

[dcano]

Again, sincerely appreciate, your advise and opinions.  As you mentioned, SC does apply credit going forward, but only max at $3,5K per year up to the point of $10,160 (max) according the SC credit section calculation.  On the fed taxes side, it was maxed at +12K or so.   As you mentioned," yes", I do agree that $48.xx was 1/2 of you my tax lability in 2017.  But, in my opinion, the glitch was in the Turbo Tax software not calculating the proper credit for the customer.   In short, I do believe, that I can get solar energy credit as a carry over because I never actually received the total amount of credit within the 10 yr period.   

As you mentioned, "Why didn't you receive the tax credit in 2018? Was it not entered or did you not have enough assessed tax in 2018 either?"  the reason I didn't receive the tax credit in 2018, was due to the Turbo Tax software glitch or software error in the calculation process.  So, to some degree, the Turbo software did NOT enter the appropriate amount or calculation to receive max amount of credit for me, the customer.   BillM223, I sincerely appreciate your guidance and advise.  At 70, it's some times difficult to get answers, to some of these tax questions.  Thank you so much,  have a great day, be safe, take care, :} stay home if possible, (mask, wash hands  etc... )  God Bless you and your family.  Al 

[taxconnect2020]

Bill,

the person you filed my taxes put in on my sch. A under other itemized deductions.  The previous years I did not itemize.  I just want to make sure that it was reported properly in 2019 under sch. A.  My nephew is an account and he mentioned something about form 5695. I reside in the state of NY. I appreciate your answer.  Please let me know if it is okay to report it under other itemize deductions or does it have to go on form 5695.

[MaryM428]

Your nephew is correct and the solar energy credit is reported on Form 5695.  In TurboTax that form is generated automatically when you answer the questions about installing solar energy. 

You could contact the person who did your taxes and ask them to amend the return and file the solar energy credit correctly on Form 5695 instead of on Schedule A.