Solar energy credit

[jsmithhawk]

We installed a solar system in 2020. TurboTax calculated a $4,146 credit. Our tax liability resulted in a $658 tax credit doe 2020 and a carry forward of $3,488. When I imported the 2020 info for our 2021 return, TurboTax only carried forward $2,433, which we were able to use in full in 2021. I don’t know why only $2,433 was carried forward instead of $3,488. Can I claim the remaining $1,055 for 2022?

[KrisD15]

To clarify, please look at your 2021 return, did TurboTax only carry forward 2,433 because that was all you could use? If yes, then yes, carry forward the remaining credit.

[jsmithhawk]

The limit based on tax liability was $3,495 on the 2021 5695 form. That suggests to me that $2,433 was not the limit but because the carry forward from 2020 to 2021 was $2,433 instead of the $3,488 on the 2020 5695 form. It seems the wrong amount was carried forward from 2020 to 2021. Is that possible?

[jsmithhawk]

To be more clear: Because $2,433 was the amount listed as the carry forward on the 2021 form, that was the amount of the credit used in 2021. The carry forward from 2020 to 2021 should have been $3,488 based on the 2020 form. I don't know where the $2,433 amount came from.

[DawnC]

The amount could have gotten changed.    Your 2020 form should show the carryover amount on Line 16 - that same amount should be on Line 12 of the 2021 Form 5695.    And then the amount from the 2021 Line 16 should flow to the 2022 Line 12.    Double-check your 2020 and 2021 Form 5695 and make sure the carry-over amounts were handled correctly.   

[jsmithhawk]

Thanks.