Solar Tax Credit

[1c3man23]

Hello, 

I paid 31K in costs for the installation completed July 2021 and the system has been generating electricity since. The entire amount of the credit is stated within turbo tax, but will not allow me to take the credit in 2021. It is saying this amount will roll over to 2022. Based on what I have input, I should be able to use o/a 5100 of the credit in 2021 leaving the remainder of the credit for 2022. 

Can I get assistance? 

[Carl]

Until you have completed your 2021 tax return in it's entirety, it's just not possible for the program to figure what you may and/or may not qualify for. Being that 2021 is not over yet and there's no way you have all of your tax reporting documents, you can't complete the 2021 return at this time.

Additionally, the program is not yet complete and won't be complete until sometime after Dec 2021 whenever congress gets around to finalizing tax laws for 2021 tax reporting. Even when they do, it's going to take time for the IRS to finalize affected forms, and more time for software developers such as TurboTax, to implement those changes in their software.

[Opus 17]

You can’t take the credit (and the credit will roll over) if you don’t owe income tax.  The simplest reason that you would not owe income tax when starting your tax return in November, is that you haven’t entered your income yet.  TurboTax will update itself every time that you enter new information.

You might also not owe any income tax this year due to the extra large child tax credit, the child and dependent credit, and the round 3 stimulus payments, depending on your family size and other tax situations.  If, after entering all your financial information, you don’t owe any income tax, then the credit will be carried forward and applied in the future when you do owe income tax.