Solar Credit

[davidmgus1]

I purchased solar panels in November of 2022. From my understanding of the way the credit works, I needed to have an amount owed to the IRS that was greater than my solar panel cost. Since I had no carry over to 2023 and now it appears I won’t have a carry over for 2024, should I go back and do an amendment of my 2022 and 2023 taxes to include the cost of solar so that if the time comes in the future that I can use the credit it will be on the record with the IRS? 

Thank you

David Gustafson

[MindyB]

Yes.  If you'd like to generate the credit in 2022 to make it available  for future years, you should go ahead an amend. Here is some more information on filing amendments: How to File an Amended Tax Return with the IRS

Note that the credit isn't a dollar for dollar reduction of tax, it's a credit of 30% of the purchase price.  As well, if you have some tax, you can take the credit to reduce your tax to zero and carryover any remaining credit to future years.

Here is some more information: Federal Tax Credit for Residential Solar Energy