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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 577
Experience:  10 years experience
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We just bought a house in March of 2015 and are considering

Customer Question

We just bought a house in March of 2015 and are considering installing Solar. Part of the finance package includes apprx $11k in ITC, income tax credits.
Our joint income was $188K and we paid $29K in taxes throughout the year and owed $250 at years end.
How will the ITC work for us? Would we get an actual $11K cash refund or just credits towards future tax?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
. A taxpayer must purchase the qualifying property to claim the credits under.If your tax liability is small - you may carry forward unused credits to another tax year.The credit is 30% of the cost - that includes purchase price, labor costs and sales taxes.So far if for instance your expenses are $35,000,estimated amount of the credit is $35,000 * 30% = $10,500On your tax return - form 1040http://www.irs.gov/pub/irs-pdf/f1040.pdf- that credit will be claimed on line 53 Residential energy credits.Based on your information - your income tax liability is above that amount - so the full credit will be used in the current tax year.Yes - your refund will be increase by that amount.