Understanding your federal tax forms seems like a lost cause to many people. And turning to a tax professional may be your cup of tea. But in a post by EnergySage, they’ve broken down every form needed to claim the federal solar tax credit, most commonly referred to as the ITC (Investment Tax Credit).
Some things mentioned to keep in mind:
- Solar array owners (not leasers) are eligible to claim the ITC on any property they live in at least part of the year. (Primary or not)
- The ITC is a refundable tax credit, which means that if your federal tax liability is less than the total solar savings, you can carry over the remainder to the following year because you can’t get more back than you owe in any one year.
You’ll just need one additional form to complete in order to claim your tax credit: IRS Form 5695. Once you’ve completed Form 5695 in the manner they outlined, you’ll take the final result (line 15) and include it in your IRS Form 1040, line 53.
Read original article at EnergySage.com…