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shaunshaun
Returning Member

The solar tax credit can be carried forward. But the electric car tax credit can't be carried forward. What happens if you have both? Can you take the car credit first?

In other words, can you take the car credit so that the other credits can be carried over, so you don't lose any of the car credit?
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4 Replies

The solar tax credit can be carried forward. But the electric car tax credit can't be carried forward. What happens if you have both? Can you take the car credit first?

Credits are used in a specific order ... non refundable credits first (those who cannot be carried forward) and then credits that can be carried forward.  So the EV credit will be used first leaving some/all of the solar credit to be carried forwarded. 

shaunshaun
Returning Member

The solar tax credit can be carried forward. But the electric car tax credit can't be carried forward. What happens if you have both? Can you take the car credit first?

Thanks. So turbotax will automatically do that, and the IRS will allow it? I was afraid they might be taken proportionally.

dmertz
Level 15

The solar tax credit can be carried forward. But the electric car tax credit can't be carried forward. What happens if you have both? Can you take the car credit first?

The tax forms impose this ordering so that the nonrefundable credits that do not carry forward are applied first, and TurboTax prepares the tax forms correctly.  So not only does the IRS allow it, the IRS requires it.

shaunshaun
Returning Member

The solar tax credit can be carried forward. But the electric car tax credit can't be carried forward. What happens if you have both? Can you take the car credit first?

Yay! Thanks so much.

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