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I have a tax liability of over $9,000 (I have paid in $6800 and owe $800) and a solar credit of $10,500 but it is carrying over entire amount to 2023. Why????

 
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3 Replies
JohnW152
Expert Alumni

I have a tax liability of over $9,000 (I have paid in $6800 and owe $800) and a solar credit of $10,500 but it is carrying over entire amount to 2023. Why????

The most likely reason is that another credit or credits have offset your tentative tax before your energy property credit could be applied, causing the credit to be carried over to the next tax year.

To see the prioritization of credits – that is, any credits that would be applied to tax before your Form 5695 credit – please see the Residential Clean Energy Credit Limit Worksheet—Line 14 in the Instructions for Form 5695.

I have a tax liability of over $9,000 (I have paid in $6800 and owe $800) and a solar credit of $10,500 but it is carrying over entire amount to 2023. Why????

something does not seem right but we can't see your return.  tax credits including the solar credit should reduce your liability to zero so you should be getting back $6800 not owing $800.  it would seem your $9000 liability was only reduced by $1400 in credits leaving a balance before payments of $7600 and after the $6800 payment is applied you owe $800.  

JohnB5677
Employee Tax Expert

I have a tax liability of over $9,000 (I have paid in $6800 and owe $800) and a solar credit of $10,500 but it is carrying over entire amount to 2023. Why????

I suggest you take a look at your tax return and see if anything stands out for you.

 

  1. On the menu bar on the left that shows.
    1. My Info
    2. Federal
    3. State
    4. Review
    5. File
  2. Select Tax Tools
  3. On the drop-down select Tools
  4. On the popup menu
  5. Select View Tax Summary
  6. On the left sidebar

Select Preview my 1040.

 

Line 15 - Taxable Income

Line 24 - Total Tax.

Line 25 - Withholdings.

Line 33 - Payments including Credits.

Line 34 - Overpayments.

Line 37 - Tax owed.

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