solar tax credit

[sfl85]

For a new home (with solar panels) closing in December, 2023, can I claim the solar tax credit when I file in 2024? Do we need to itemize our deductions to claim the solar tax credit? What forms are needed to claim the solar tax credit?

[TeriH · Accepted solution]

So, if you install and begin using a residential solar system during the year 2023, you'll claim the credit on your 2023 tax filing. If you start a solar panel installation in December of 2023 but don't turn the system on until January of 2024, you'll claim the credit on your 2024 filing.

To claim the credit, you'll need to file IRS Form 5695 as part of your tax return. You'll calculate the credit on Part I of the form, and then enter the result on your 1040.  This is all built into TurboTax.