Solar Tax Credit

[pbknight1]

We're seniors and have no tax liability.  Our only income is social security and it is not taxed.  We installed solar panels on our home and are wanting to know how to get the texas energy solar tax credit.  Our CPA says we do not have to file because we  have no tax liability.  But, if we understand correctly, the only way to get our energy credit we must file.  I've spoken to Sunova Solar Company and they say we do qualify and must file through the IRS. 

[DoninGA]

Since you have no tax liability the solar energy credit will not be used and will be carried forward until the credit is used up.

You need to file to report the credit on your tax return even though you have no taxable income when reporting Social Security benefits.

To e-file the tax return you can add $1 of interest income to your tax return.  When entering the From 1099-INT enter any name for the Payer/Received from and $1 in box 1 of the form.

[DaveF1006]

No. You would not qualify for the energy credits because you do not have any tax liability. An energy credit is a non-refundable credit, which helps reduce your tax liability to zero. Since it is already zero, you won't be able to tak advantage of the credit for this year.

You may report an energy credit in your return and if you can't apply it this year, the credit will carryforward indefinitely. There may be a point in the future where you may have taxable income and tax liability as a result.  If that happens, you will be able to use some if not all of the energy credit.