There are limitations on this credit.Do any of these to you?
Limitations of this credit
- Personal Use
- If your credit is bigger than what you owe in taxes, the taxes you owe are reduced to zero, and the rest of your credit is lost.
Example: If you owe $800 in taxes, and you receive a credit of $1,000, the tax you owe is reduced to zero, and the remaining $200 is lost. You won't receive a refund for the remaining $200.
- If you pay alternative minimum tax (AMT) you will not be able to claim this credit. If you are close to paying AMT, this credit may be limited by your tentative minimum tax as calculated on Form 6251, Alternative Minimum Tax - Individuals, line 33.
Business Use
- The business portion of the credit is part of Form 3800, General Business Credit, so any unused amount of the credit is not lost, but is eligible for the carryback/carryforward provisions of the general business credit.
- If you use this station for business and claim a depreciation deduction, you must subtract the credit amount when TurboTax asks you to enter the cost of the station in the Business (Schedule C) or Farm section of the program.
Example: You paid $5,000 to purchase and install your station at your business location. The station is eligible for a credit of $1,500. To claim the depreciation deduction, you must subtract this credit amount when entering the cost of the station in the Business or Farm section of TurboTax.
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