The 30% tax credit for the cost of buying and
installing a solar system is available for 2018 and 2019. For 2020 the credit
drops to 26%, for 2021 the credit drops to 22%, for 2022 the credits fall all
way down to 10%, for 2023 the 10% credit is only for companies that install and
maintain solar systems and sell the power to another entity (homeowner,
business, utility company, etc.)
The federal solar tax credit (residential energy
credits - Form 5965) is a tax credit, not an itemized deduction.
So, it won't be affected if you stop itemizing your deductions. You
will still be able to take advantage of this credit even without itemizing.
But, it is limited to tax liability. However, you can carry it forward
to future years when you aren't able to use up the tax credit in one year.
Note: Technically, the IRS has not clarified how long the carry
forward will be available to use. As of now, the carry forward should be
available until 2022, at least, because the tax credit was recently extended
until that time. So, it's possible that the IRS could stop allowing the
carry forward at that time. Also, you will need to file the Form every
year even if you aren't able to use any of the tax credit in order to keep the
credit carrying forward.
the TurboTax FAQ for more information on "How do I add or remove Form 5695?": How do I add or remove Form 5695?
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Schedule 4 is one of the six new schedules comprising
the new Form 1040 based on the 2018 Tax Reform legislation.
Please read this TurboTax FAQ for additional information: What are
the new schedules?
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Unfortunately, there isn't a "one-size-fits-all" answer, Please read the following to better understand what may happen. You
may be able to file Form 8379 (Injured Spouse Allocation),
which will allow you to get back your portion of a jointly-filed refund if it's
seized or offset to pay your spouse's debt.
Note: IRS special rules may apply if you live in a community state (Arizona,
California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and
Wisconsin) (continue reading information listed below FAQ).
read the TurboTax FAQ below for more information about filing a Form 8379: https://ttlc.intuit.com/replies/3326788
you live in a community property state that recognizes your marriage, special
rules will apply to the calculation of your injured spouse refund. Enter the
community property state(s) where, at any time during the year, you and your
spouse resided and intended to establish a permanent home. For more information
about the factors used to determine whether you are subject to community
property laws, see Pub. 555.
community property states, overpayments are considered joint property and are
generally applied (offset) to legally owed past-due obligations of either
spouse. However, there are exceptions. The IRS will use each state's rules to
determine the amount, if any, that would be refundable to the injured spouse.
Under state community property laws, 50% of a joint overpayment (except the
earned income credit) is applied to non-federal tax debts such as child or
spousal support, student loans, state unemployment compensation debts, or state
income tax. However, state laws differ on the amount of a joint overpayment
that can be applied to a federal tax debt. The earned income credit is
allocated to each spouse based on each spouse's earned income.”
For more information IRS: Instructions 8379 – Injured
After a return as been accepted by e-file
this form must be mailed. You have
plenty of time.
Reminders and Tips:
the correct person as the injured spouse (the one without any debt)
the injured spouse is the only one with income all of the refund will be
released after IRS review of the Form 8379.
you are not in a community property state, and both of you have income, you can
divide exemptions up any way you see fit. It is possible the IRS may make some
adjustments based on the income levels for each of you. Let them do that when they receive it.
you do live in a community property state, community income would be split
equally between the two spouses. With
respect to deductions, the deductions would be split depending on whether the
expenses related to community income or separate income.
standard deduction must be split between you so you can't change that
part. For itemized deductions you can
put those under the injured spouse.
Please note, this will cause your return to
take longer to process. Per the IRS, 11
weeks for an e-filed return and 14 weeks for a mailed return. (estimated)
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Yes, but keep in mind: The Tax Cuts and Jobs Act of 2017 nearly doubled the standard deduction amount for tax years 2018 through 2025 (read more here). In addition, the SALT deduction (state, local, property, and sales tax) is now capped at $10,000 ($5,000 for couples filing separately), whereas in prior tax years there was no cap. As a result of these and other tax law changes, our estimate is that nearly 90% of tax filers will now be taking the higher standard deduction, up from around 70% last year. And if you're in the 90% group, you won't see a change in your refund after entering your mortgage interest and property taxes. Please read this TurboTax FAQ for information on “Why didn't
my mortgage or property taxes increase my refund?”: Why didn't my mortgage or
property taxes increase my refund? .
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How to File an Extension for State Taxes: https://turbotax.intuit.com/tax-tips/tax-extensions/how-to-file-for-an-extension-of-state-taxes/L6FmvMk8E Please see the below for a list of state Department of Revenues: https://ttlc.intuit.com/replies/3302452
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