Solar Tax credit not working correctly in Turbotax?

[denby2]

I was doing my taxes in Turbo tax.   Was about done.  I was going to owe $200 for 2023.

I then realized I didn't enter the information for my solar panel installation.   I went into the wizard and entered the $25,800 for the cost of my solar panel installation. 

Now I am getting a refund of $7,500?

I though the solar tax credit was not refundable, so I was expecting the amount due to be $0, with a carryover.

Any ideas on what might be happening?  On form 5695, line one has the install of $25,800.   6b has $7,740.   Where might the enter the smaller of, be applied?

[CatinaT1]

Form 5695 is currently is being updated. The current estimated date for the fix is 02/24/24. Please try after that date following these steps:

1. Navigate to Deductions & Credits, and select Home Energy Credits.
2. Follow on screen prompts to answer all questions related to Home Energy Credits. 

3. Do not exit this topic without answering all of the Home Energy Credit questions.
4. When you reach the Home Energy Credit Summary, click Continue.
5. Review and correct any errors that are flagged. When all errors have been corrected, retransmit your return for electronic filing.

Here is the link for updates:  Form 5695 Updates

[denby2]

I received the update today.  Installed the update and rebooted my PC.     I follow the instructions, and it still showed me getting a large Federal Return.

I deleted the 5695 and then it showed me owing taxes.    

I went into the Home Energy section and entered the amount for my solar, and I am expecting my refund to be zero, it is now back to the $7xxx number.

THe message on the Turbo Tax Screen says

"You qualify for a home energy credit of $7xxx

The money you just sayed with this valuable credit went straigth to your refund, dollar-for-dolar".

The question did ask if this was carryforward from last year, which I said no.

I don't think it is fixed.

Dennis

[AmyC]

The form is being updated.   Please sign up for notifications.  Use this link to sign up for notifications for Form 5695.   Sign up for Form 5695 notifications.    

[elynn31]

My South Carolina Carryover Credit is not working.  I put it in the document but it doesn't change my refund amount and is showing as $0 for a deduction.  

I do not have a federal carryover, just a state carryover.  Is this a part of errors in the Solar Credits?

[JohnW152]

South Carolina's residential solar credit is nonrefundable, meaning that you can only use the credit to the extent that it offsets any tax you owe.  The same applies to any carryover of the credit.

If you do have tax that a carryover should offset, then, in the state interview portion of TurboTax Online:

1. Open TurboTax Online
2. Select Tax Home in the left pane
3. Select the dropdown to the right of State Taxes
4. Select the pencil
5. Select your South Carolina return
6. Proceed through any screens until you get to the Take a look at South Carolina credits and taxes page, then select Start or Revisit  to the right of Solar Energy, Hydropower, or Geothermal Credit
7. Select Yes on the Solar Energy, Small Hydropower System, or Geothermal Machinery and Equipment Credit screen
8. Select Solar energy system on the next page, and Yes on the next page
9. On the Installation and purchase expenses, carryforward, and number of facilities page, enter your carryover amount in the second box (carryover), then select Continue
10. Your allowable Solar Energy, Hydropower, or Geothermal Credit amount will display on the Take a look at South Carolina credits and taxes page
11. Select Done with credits and taxes

To see how this plays out on your return in the state tax summary in TurboTax Online:

1. Select Tax Home in the left pane
2. Select the dropdown for any category in the middle of the page, then select Review/Edit

• If you don't see Tax Tools in the left pane, close any dropdowns in the pane -- for example, next to Federal or State Taxes 

1. Select the dropdown to the right of Tax Tools
2. Select Tools
3. In Tools Center, select View Tax Summary
4. In the left pane, select SC Tax Summary

If you have no tentative tax, or your tax has been offset by other refundable credits, your carryover amount won't apply this tax year.

If your navigation screens don't reflect these instructions, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?. 

@elynn31