I purchased solar panels and an electric car this year - both have tax credits. My tax liability will be less than the sum of both credits. The ITC credit for the solar panels can be carried forward but the electric car credit cannot. Can I apply the electric car tax credit first, the ITC credit second and carry over the balance of the ITC credit to my 2020 taxes?
You'll need to sign in or create an account to connect with an expert.
In the past, the software automatically uses the credits that do not carry-forward first (tax laws are "usually" written that way).
You just enter all the possible credits you have, and then check your printouts when done to ensure they are being applied correctly before you actually file.
The tax software usually has a lot of bugs early on, so don't file until at least March 1.
I just tried it on a test 2018 tax return...
Had a $6000 credit for solar panels ($30,000 install), and a $2500 Credit for a Chevy Volt.
For a $3173 tax, the software applied the $2500 E-car credit first, and then used $673 of the Solar and carried $5327 to next year on the form 5695 line 16.
I just entered the info....the software applies the credits in the proper order.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
correttamcmillan07
New Member
jujupan14
New Member
losttaxer
New Member
makeitreynes
New Member
naimasultana4
New Member