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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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I am expecting a 30% tax credit ($7,500) on the installation

Customer Question

I am expecting a 30% tax credit ($7,500) on the installation of solar panels in 2015.
Does this offset taxes I would have to pay? What Form or schedule do I use, and on what line of Form 1040 is that reported?
Thank you.
Submitted: 11 months ago.
Category: Tax
Expert:  Lev replied 11 months ago.

Yes - that credit will reduce your tax liability.
It is not refundable - so if you do not have any tax liability - you woudl not be able to use the credit - but in such situation you can carry the credit over to the following tax year.

Expert:  Lev replied 11 months ago.

Here is the form to calculate the credit
https://www.irs.gov/pub/irs-pdf/f5695.pdf
and instructions
https://www.irs.gov/pub/irs-pdf/i5695.pdf
on form 1040 the credit is reported on line 53

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