Tax credits

[Mstrlucky74]

Had another consult today with Level Solar. Not sure how I feel about a PPA program which is basically buying the electricity from them. Also their panels are the lg with silver borders and not that nice looking.

Anyway, they told me that the only way anyone gets either federal or state tax credit is if they owe taxes on their return and don't get a refund. Is this true?

[inetdog]

Had another consult today with Level Solar. Not sure how I feel about a PPA program which is basically buying the electricity from them. Also their panels are the lg with silver borders and not that nice looking.

Anyway, they told me that the only way anyone gets either federal or state tax credit is if they owe taxes on their return and don't get a refund. Is this true?

Totally untrue or at least misleading.

If you have partially paid your taxes during the year (via withholding or estimated tax payments) then your tax credit can result in your getting a bigger refund. It does not matter what you have to pay or get as a refund when you file your return. It has to do with the total tax due for the year before any credit for payments made or withheld.

If you are retired with no taxable income, for example, then you have no tax liability and the credit will do you no good.
Or if the property belongs to a tax exempt non-profit like a church there will be no tax liability and therefore no way to make use of the credit.
If you had $3000 withheld from your paycheck and only owed $2500, then you will get a $500 refund with no tax credit and up to $2500 more in refund if you have that much in tax credit from a PV installation.

Disclaimer: IANATA

[8.4]

Totally untrue or at least misleading.

If you have partially paid your taxes during the year (via withholding or estimated tax payments) then your tax credit can result in your getting a bigger refund. It does not matter what you have to pay or get as a refund when you file your return. It has to do with the total tax due for the year before any credit for payments made or withheld.

If you are retired with no taxable income, for example, then you have no tax liability and the credit will do you no good.
Or if the property belongs to a tax exempt non-profit like a church there will be no tax liability and therefore no way to make use of the credit.
If you had $3000 withheld from your paycheck and only owed $2500, then you will get a $500 refund with no tax credit and up to $2500 more in refund if you have that much in tax credit from a PV installation.

Disclaimer: IANATA

I believe the upper limit of tax credit is up to your taxes owed. Maybe you meant that, but I wasn't sure with your up to$2,500 limit statement.

[J.P.M.]

Read the tax code and consult a CPA. The IRS doesn't care what anyone told you if they question/audit your return. Why are you even considering what a peddler tells you ?

[solar_newbie]

Had another consult today with Level Solar. Not sure how I feel about a PPA program which is basically buying the electricity from them. Also their panels are the lg with silver borders and not that nice looking.

Anyway, they told me that the only way anyone gets either federal or state tax credit is if they owe taxes on their return and don't get a refund. Is this true?

If you have 30K on your tax liability (even you paid or not pay yet or pay 40K and expect 10K refund), you can still claim up to 30K from solar credit (aka buy a 100K system).

[sdold]

If you have 30K on your tax liability (even you paid or not pay yet or pay 40K and expect 10K refund), you can still claim up to 30K from solar credit (aka buy a 100K system).

What does this mean???

[silversaver]

It is Federal tax incentive. It acts like a tax credit. If you are retired and have $0 income or you don't file any tax, then you get nothing return since you pay nothing to Federal.

If you are W2, you get tax return on your Ferderal part when you file your tax up to the amount you pay to Federal Tax portion.

If you are 1099, then you use the credit to pay your Federal tax.

I'm not going to the details, but Google is your friend.

http://energy.gov/savings/residential-renewable-energy-tax-credit

at least read the subject....

[thejq]

Also you don't have to use up the entire tax credit. Unused portion can be carried forward to at least 2016, beyond which the rule is unclear (or yet to be defined).

[veerrao]

Please contact your tax adviser / CPA, I had similar doubts and misinformation and CPA clarified

[cebury]

If you have your 2014 return and you filed a "1040 US Individual Tax Return" as many do, look on Page 2 (the page you signed).

Line 56 with the little rectangle box by it.

What is that number?

If you'd rather not say, that number is what you hadavailable last year to use toward solar tax credits. If this year your finances stayed exactly the same, you'd have near that same amount available for solar purchase to use on your next return. If the number if $5,000 you could purchase a $15,000 Solar PV and would be given credit for $4,800. If the number is $1000 you can only claim that much of the 30% benefit.