30% tax deduction

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Comments

  • ggunnggunn Solar Expert Posts: 1,973 ✭✭✭
    Re: 30% tax deduction
    I had two quick questions on the tax subject (which i dont think have been answered in this thread unless i missed it)

    1. Are there any stipulation on systems needing to be installed by 'licensed contractors' or are you still eligible for the credit if you do the install yourself (Im planning to at least install the panels myself).

    2. What is your tax liability ( in reference to "If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year").
    I assume this just means your tax liability before deductions, etc?
    It means the bottom line on your 1040 before subtracting out what you have already paid through withholding or whatever. You cannot come out ahead for the year by putting up a PV system.
  • schmidtye30schmidtye30 Registered Users Posts: 7
    Re: 30% tax deduction
    ggunn wrote: »
    It means the bottom line on your 1040 before subtracting out what you have already paid through withholding or whatever. You cannot come out ahead for the year by putting up a PV system.

    I believe you are referring to line 60 (your "Total Tax") which is what I was hoping. I just wanted to know if I should make changes to my w2 to have as little money taken out of my pay as possible in order to maximize my credit each year.


    Thanks,
    Ryan
  • ggunnggunn Solar Expert Posts: 1,973 ✭✭✭
    Re: 30% tax deduction
    I believe you are referring to line 60 (your "Total Tax") which is what I was hoping. I just wanted to know if I should make changes to my w2 to have as little money taken out of my pay as possible in order to maximize my credit each year.


    Thanks,
    Ryan

    How much you have withheld during the year is not a factor, it's what your total tax for the year is after all adjustments, no matter when you pay it. It may indeed be line 60; I haven't seen a 1040 for anything other than to sign it and hand it back to my wife in years.
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