Retroactively claiming PMI for 2018 with no tax liability due to ITC

[Masejoer]

In 2018 I had a solar system installed and claimed part of the solar ITC (more credit than tax liability). The remainder of my ITC is being carried over to the 2019 tax year.

With the PMI changes that can retroactively go back to 2018, since I didn't pay any federal taxes in 2018 due to the ITC, how would I get the PMI deduction for 2018?

[Opus 17 · Accepted solution]

You would file an amended return for 2018.  The PMI deduction would lower your tax liability, which would reduce the amount of energy credit you received.  You would get no additional refund from your 2018 return. but you would have a larger carry forward amount of credit for this year.

If you do this, you must prepare the amended 2018 return before filing your 2019 return so you know the correct amount of carry forward.  Remember that your maximum savings will be 22% or 24% of the amount of PMI you paid, and you won't get any benefit from the deduction unless your total itemized deductions are more than the standard deduction of $12,000 for single or $24,000 for married filing jointly.

[Masejoer]

I was guessing that may have been the way to go, but just wanted a more experienced person's take on it. By doing this, I am just increasing my ITC carry-forward into 2019 by whatever the PMI deduction calculation comes out to.

Hoping TurboTax updates their 2018 software soon so I can just amend through the software and print the mail-in.

Thank you for the input!