Carried forward from 2022 or the unused amount that will carry forward from 2023?
For 2023, the Home Improvement Energy Efficient Credits do not carry forward. These are the credits for most of the non alternative energy items. They have become use it or lose it.
The Residential energy credits (solar and wind) are carried forward.
So depending on which credit you have, you may or may not be eligible for it to carry forward.
If you look on line 16 of your form 5695, this will show any eligible carryforward, but as stated, they are ONLY for the residential energy credit, not the Energy Efficient Credit.
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Form 5695 Line 16 from 2022 Solar Credit is $13,051 and should be carried over to 2023, but I an only getting $2,245 carried over. It wants to carry the remaining $10,806 to 2024. This can't be correct! The Residential energy credits (solar and wind) are carried forward.
@mikeandginaaz If the credits reduce your tax liability to 0 (zero) on the 2023 tax return then the remaining credit is carried over to the next tax year.
Look at line 16 on your 1040, then also look at line 24. If the amount on line 16 is less than the full credit, then this is the maximum amount of the credit you use this year will be that number. If you have other credits, that may also reduce the tax liability, this may also reduce the amount of the credit you receive.
Then look at line 24. If this line is $0, then you received one of more credits that brought your taxes down to $0. If this is the case, and you had multiple nonrefundable credits, you may not get the full credit for one or more of the credits. If you look on line 16 of your form 5695, this will show any eligible carryforward. The credits can be carried forward until the residential energy credit expires which is currently set for 2034 or until you use it entirely up.