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Level 1
posted Feb 22, 2021 10:30:51 AM

If I missed filing solar energy tax credit on prior year (the software didn't take the numbers), can I continue on current year or carried forward from 2 years ago? Help.

Solar energy tax credit skipped a year.

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3 Replies
Expert Alumni
Feb 22, 2021 11:10:53 AM

If you used TurboTax in 2018, the credit would have been carried forward to your 2019 income tax return. If the credit was not used in 2019 and 2020, it may be because your credit was limited or you may be getting other tax credits that have reduced your tax. 

 

Your 2019 return should show a credit on your Form 5695, Line 16, Credit carryforward to 2020.

  • If you used TurboTax in 2020, the solar credit should be carried into your 2020 income tax return. 

Under the Residential Energy Efficient Property Credit, you can get a federal tax credit for installing alternative energy equipment, such as solar electric property, solar water heaters, geothermal heat pumps, small wind turbines, and fuel cell property.

 

In 2018, 2019 and 2020, an individual may claim a credit for

(1) 10 percent of the cost of qualified energy efficiency improvements and

(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during the taxable year (subject to the overall credit limit of $500). 

Level 1
Feb 22, 2021 5:19:35 PM

Thank you Helen. I used TurboTax every year. I tried to added the energy tax credit back in 2019 but the software won't take. Since I collect unemployment this year, the software asking if I have energy tax credit from 2019. I have it from 2018, but not in 2019 paperwork. Do you think I still use that credit from 2018?

Expert Alumni
Feb 22, 2021 5:39:15 PM

Yes, you would still be able to use the credit in 2020 as long as a credit is available to carry forward. You should double check your 2018 and 2019 tax returns to make sure that the credit is available to be carried forward for use in 2020. 

 

In 2018, the credit would be on Schedule 3 (Form 1040) and Line 12 on the 1040.

 

And check the Form 5695, Line 16 from 2018 to confirm that the credit was carried forward.