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Solar Tax Credit with TurboTax Online

I installed solar in 2025. I know I need to file a form 5695 but I cannot find it in the online version. I filled out the Home Energy Credit pages in online TurboTax. We initially owed money, with the credit, it shows us getting a refund. That is incorrect, it should just go to $0 and carry the rest of the credit to next year. 


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1 Best answer

Accepted Solutions
MindyB
Expert Alumni

Solar Tax Credit with TurboTax Online

Not necessarily, the Residential Clean Energy Credit is indeed nonrefundable, which means it can’t give you back more than the total tax you actually owe for the year. However, the reason TurboTax is likely showing you a refund is that the credit has wiped out your tax liability, which now allows the IRS to send back the money your employer already withheld from your paychecks throughout 2025 (or estimates you paid).

 

To double-check this, you can look at your 1040 summary (Tax Tools on the left of your screen, choose Tools, then View Tax Summary) to see if your Total Tax line is now at zero; if it is, any leftover portion of your solar credit will automatically carry forward to help you out on your 2026 return. 

 

TurboTax generates Form 5695 as you answer those energy questions, so even if you don't see the form itself in the online view, it is part of your return. Once you have paid, you can view the entire return by selecting Tax Tools from the left-hand menu, then select Print Center, choose Print, save or preview this year's return, and scroll to 5695.

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1 Reply
MindyB
Expert Alumni

Solar Tax Credit with TurboTax Online

Not necessarily, the Residential Clean Energy Credit is indeed nonrefundable, which means it can’t give you back more than the total tax you actually owe for the year. However, the reason TurboTax is likely showing you a refund is that the credit has wiped out your tax liability, which now allows the IRS to send back the money your employer already withheld from your paychecks throughout 2025 (or estimates you paid).

 

To double-check this, you can look at your 1040 summary (Tax Tools on the left of your screen, choose Tools, then View Tax Summary) to see if your Total Tax line is now at zero; if it is, any leftover portion of your solar credit will automatically carry forward to help you out on your 2026 return. 

 

TurboTax generates Form 5695 as you answer those energy questions, so even if you don't see the form itself in the online view, it is part of your return. Once you have paid, you can view the entire return by selecting Tax Tools from the left-hand menu, then select Print Center, choose Print, save or preview this year's return, and scroll to 5695.

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