Residential Energy Credit calculated incorrectly?
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Level 1

Residential Energy Credit calculated incorrectly?

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. 

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Expert Alumni

Residential Energy Credit calculated incorrectly?

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

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Level 1

Residential Energy Credit calculated incorrectly?

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. 

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Expert Alumni

Residential Energy Credit calculated incorrectly?

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.

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