Solar Panel Credit

[brodrig]

I have been trying to get the solar panel credit for the past three years and the credit is always $0.  Can someone explain why I am not getting the credit?

[DawnC]

You probably have no tax liability.   The credit is nonrefundable, so if you don't have any tax liability, no credit will be applied.   You can carry over the credit until you have a tax liability.  

See this link for more info on how it works.  

[brodrig]

Pardon my ignorance but what do you mean with tax liability? which line is that on the 1040?

[DawnC]

Tax liability is on Line 24 of Form 1040. 

[brodrig]

on that line I have a tax liability of $6,235 why isn't giving me any credit?

[DaveF1006]

Check lines 25-32 to see if there are any amounts listed there. Then check line 32.  if line 32 is more than line 24, then you have a refund that is reported on line 33. If line 32 is less than line 24, then the amount is on line 37 and you owe money.

Lines 25-32 have the additional credits and tax payments that reduce your tax liability that determine the final outcome of your return, whether it be a refund or taxes owed. 

[DaveF1006]

@brodrig 

[brodrig]

I have EIC, AOTC credits and the w2 credit.  I don't owe I get a refund, but I am not getting the solar credit why when i have tax liability?

[Cynthiad66]

Your EIC and AOTC credits are refundable and most likely causing a refund.  But line 24 is key.  You said you have $6200 there, which means either you did not get the credit or that your tax on line 16 was significantly higher than line 24.

I suggest you go into the return to review the schedule 5695.  To do that follow these instructions.

Click on Tools in the left menu column, then Tax Tools .  Then in the popup choose View Tax Summary.  In next popup, look for the tab "Preview Form 1040.  You can see soome of the actual return.

If using the Desktop version, simply go to forms mode in the upper right corner, then select form 5695.