Solar Tax Credits.

[ncaulfield]

I installed and started using a solar panel system on my primary residence this year, (2023). I qualify for the 30% residential energy tax credit.

Question: When I entered this information into the 2023 Premier TurboTax program, it indicated I couldn't use these tax credits until the 2024 tax year.  Is this right...that I can't use these tax credits for the 2023 tax year?  In reading the IRS website it suggests tax credits can be used in the same year they are earned.

Thank you. 

[DoninGA]

The IRS has not yet finalized Form 5695, Residential Energy Credits for tax year 2023.  The TurboTax 2023 program is scheduled to updated with the finalized form 5695 on 01/10/2024.

Go to this TurboTax website for forms and schedules availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

[Opus 17]

Also, the credit is limited to your income tax liability.  If you have not yet entered your income, you won't have a liability and the program will tell you that you need to carry the credit forward.  Once you have entered your income and your tax is calculated, the credit will automatically be revised. 

[ncaulfield]

Sounds good. Thank you!

[ncaulfield]

Actually, I had not added income yet....I jumped ahead looking to see what my 2023 solar credit would be. Thank you for your help.

[Critter-3]

Yep .,.. the program works best if you follow the interview in the proper order which means you must enter the income first before the credits can be calculated.