Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Taxpayer received a 30% solar energy credit in 2016. In

2017, the local utility company...
Taxpayer received a 30% solar energy credit in 2016. In 2017, the local utility company issued a rebate check for part of the cost. Should the 2016 return be amended to reduce the cost of the solar equipment and reduce the credit? The utility company sent a 1099 for 2017 with no dollar amounts in any of the boxes.
Show More
Show Less
Ask Your Own Tax Question
Answered in 16 minutes by:
3/9/2018
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,143
Experience: Taxes, Immigration, Labor Relations
Verified

No need to amend 2016 tax return.

Because that rebate was issued in 2017 - it will be included into 2017 tax return..

That will be classified as "recovery"

A recovery is a return of an amount you deducted or took a credit for in an earlier year.

You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. For this purpose, any in-crease to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year.

You will report the amount of rebate which was included into your credit as income on 2017 tax return as recovery.

Let me know if that helps.

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,143
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,143
33,143 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Are SREC's (Solar Renewable Energy Credits) taxable income?
are SREC's (Solar Renewable Energy Credits) taxable income? What if you have not yet finished payments on your solar panels? … read more
taxmanrog
taxmanrog
Master\u0027s Degree
998 satisfied customers
I HAVE A CLIENT THAT BOUGHT A HOME WITH HER MOM, THE MOM
I HAVE A CLIENT THAT BOUGHT A HOME WITH HER MOM, THE MOM CLAIMS THE MORTG INTEREST, THE DAUGHTER JUST PUT IN SOLAR ENERGY PANELS CAN SHE JUST WRITE ONLY THE ENERGY CREDIT FORM 5695 WITH OUT HAVE A SCH… read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
271 satisfied customers
Energy Credits - Please confirm that energy tax credits have
Energy Credits -Please confirm that energy tax credits have expired at end of 2016. Are there any credits for residential HVAC for 2017 tax year?Thanks, JW… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
My company developed and sell a new solar charger for golf
My company developed and sell a new solar charger for golf cars and Rvs . I want to know if my clients can have a tax rebate ? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,472 satisfied customers
These tax credits are not, I think I might be wrong, the 30
These tax credits are not, I think I might be wrong, the 30 percent Tax Credit from solar panels. In other words, some solar companies are quoting the roof and solar installation as the 30 % I would g… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
I would like to know what kind solar panel rebate one should
I would like to know what kind solar panel rebate one should get back for installation of solar panels… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I've been considering getting a solar panel system but have
I've been considering getting a solar panel system but have heard different things from the solar panel company and on the internet about the order in which federal, state, county incentives are appli… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I am looking at starting a solar power company providing
I am looking at starting a solar power company providing solar power systems to residential customers in TX. I need to find out if my company can monetize the 30% investment tax credit and the acceler… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,472 satisfied customers
We are looking into a building a solar energy greenhouse.
We are looking into a building a solar energy greenhouse. The manufacturer certifies that the product qualifies for the 30% federal tax credit. However, 30% of the cost is more than our annual tax lia… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
We installed $65,000 worth of solar panels. The local utility
We installed $65,000 worth of solar panels. The local utility gave us a rebate check for $40,000. How do we declare this as income? Is it Capital gains? Short term or long term? The solar panels are l… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
What is Hawaii state tax law converning the purchase and installation
What is Hawaii state tax law converning the purchase and installation of a residential solar electric system?… read more
Zhannaxena
Zhannaxena
42 satisfied customers
In 2011 I installed a solar electric system on my main residence.
In 2011 I installed a solar electric system on my main residence. 2 questions: 1. Do I get credit for the entire installation cost of the system - Permits, installation fees, Wiring, upgrade to the AC… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
I have a client who is going to install solar pannel in their
I have a client who is going to install solar pannel in their home in 2011. What is the Federal tax credit they are entitled to..the net cost will be $15k after they get the rebate from the electric c… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
We juust installed a new hiefficiency furnace .Should be worth
We juust installed a new hiefficiency furnace .Should be worth $150 rebate on fed tax. Do we apply for that now, or wait for tax time$… read more
Charles Greiner
Charles Greiner
Owner
Bachelor's Degree
2,436 satisfied customers
TAX CREDITS ON SOLAR PANELS SOLAR PANELS WILL COST $30,000.
TAX CREDITS ON SOLAR PANELS SOLAR PANELS WILL COST $30,000. THE UTILITY COMPANY WILL PICK UP $20,000 OF THE COST LEAVING A NET COST OF $10,000 FOR ME. THE QUESTION IS DOES THE 30% FEDERAL TAX CREDIT A… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 satisfied customers
I have a solar tax credit question mainly for the state of
I have a solar tax credit question mainly for the state of Arizona . I sell solar hot water systems and I show the customer what to expect to be their final cost or out of pocket expense after all Pow… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
what exactly is the 30% tax credit for commercial solar ...
what exactly is the 30% tax credit for commercial solar power systems and how is it applied. If i owned a mini-mart, how would i apply this tax credit and how long would i have to use it?… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
if I use solar panels to run my cooling system at my ...
if I use solar panels to run my cooling system at my business in the state of Idaho do I get any tax incentives for that?… read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x