Residential Solar Credit

[user17724840587]

Using Turbotax Online

I entered my residential solar installation costs in the Deductions and Credits>Home section of TurboTax Online. My Federal refund increases by $20k. Solar installation is a tax credit. Not a refund.

Is this a software display issue and will be corrected when file?

[AmeliesUncle]

How much did you enter for the cost?  If it was $67,000-ish, then it would result in a $20,000-ish tax credit which can potentially increase your refund by $20,000-ish (if your tax return has enough "income tax" that can be used against the credit).

If that isn't answering your question, maybe you could provide some additional details about what you think is wrong.

[user17724840587]

The system cost $57k. 

I believe it's wrong because it's a solar tax credit not a solar refund. I was receiving a $11k tax refund prior to submitting information about the solar panels.

My tax situation has been the same for 10+ years and I always claim zero so there's a tax refund (It's just how I prefer. I know it's like giving the government a loan for a year).

[AmeliesUncle]

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@user17724840587 wrote:

I believe it's wrong because it's a solar tax credit not a solar refund.

A tax credit for solar CAN result in a refund (including increasing your existing refund).

Although it is called a "nonrefundable credit", that does NOT mean it can not increase your refund.  It means the refund is limited to the amount of income tax (Line 16 of Form 1040, although some tax credits may be applied first).

[user17724840587]

It appears there's a software issue with TurboTax using form 5695