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Old 02-11-2017, 12:23 PM
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Solar - 30% Federal Tax Credit

I have a few questions:

If I paid $30,000 for a solar system and I am due a $9,000 Federal Tax Credit, how would the credit be applied in the following scenarios?

1) If I owe $1,000 to the IRS at the end of the year, would I get a check back for $8,000?

2) If I am due a refund of $1,000, would I get a check back for $10,000?

3) If all the stars align and I miraculously paid in exactly the amount of taxes I am supposed to and I owe zero to the IRS, would I get a check back for $9,000.



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Old 02-11-2017, 08:42 PM
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Anyone? Does it matter the amount I had withheld from my paycheck for the year? In other words, If I made $100,000 and I had $25,000 in taxes withheld. Would the $9,000 be taken off the $20,000 that was withheld? I'm not sure I'm looking at this correct.



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Old 02-11-2017, 11:55 PM
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1) If I owe $1,000 to the IRS at the end of the year, would I get a check back for $8,000?=====>No; Unfortunately, the 30% ITC is not a refundable credit. However, you can use its value for up to 5 years after installing your solar system, so you?ll be able to use it partially or fully for the following year?s tax bill, or for subsequent years. if you end up with a bigger credit than you have income tax due -- a $9K credit on a $1K tax bill, for instance -- you can't use the credit to get money back from the IRS. Instead, you can carry the credit over to the following tax year to reduce your taxable income.

2) If I am due a refund of $1,000, would I get a check back for $10,000?=>No as mentioned previously,

3) If all the stars align and I miraculously paid in exactly the amount of taxes I am supposed to and I owe zero to the IRS, would I get a check back for $9,000. Anyone? Does it matter the amount I had withheld from my paycheck for the year? In other words, If I made $100,000 and I had $25,000 in taxes withheld. Would the $9,000 be taken off the $20,000 that was withheld? I'm not sure I'm looking at this correct.===>As a said no it is nonrefundable credit



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Old 02-12-2017, 01:54 AM
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So is this example incorrect?

Charles is a local news anchor
•He earned $150,000 this year
•His total tax liability is $25,000
•He is a W-2 employee, and has money withheld from his paychecks every 2 weeks
•After doing his taxes, he found that $27,000 was withheld from his checks
•Before applying his ITC he will receive a tax refund of $2,000 (27,000 – 25,000)
•He went solar and has a tax credit worth $10,000
•How will this tax credit affect him?
•He will now receive a total refund of $12,000!
Withholdings $27,000 – Liability $25,000 = $2,000 refund (w/out tax credit)
Withholdings $27,000 – Liability $25,000 – Tax Credit $10,000 = $12,000 total refund!



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Old 02-12-2017, 01:56 AM
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And in this example, what SHOULD the outcome be? The reason I ask is, I work for a solar company and we were trained on these examples, but based on what I've been reading, I had some questions as to the accuracy.

James is a small business owner
•He earned $100,000 this year
•His total tax liability is $19,000
•He does not have money withheld from his checks, and usually writes a check to the taxing authority at the end of each year.
•After doing his taxes, he found that he owes $19,000
•He went solar and has a tax credit worth $10,000
•How will this tax credit affect him?
•He will now only owe $9,000!
Withholdings $0 – Liability $19,000 = $19,000 due (w/out tax credit)
Withholdings $0 – Liability $19,000 – Tax Credit $10,000 = $9,000 due!


Last edited by RM1968NJ : 02-12-2017 at 02:00 AM.


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Old 02-12-2017, 02:03 AM
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Posts: 8
The reason I ask is I work for a solar company and we are trained on the below examples. If they are in fact incorrect, please let me know what the outcome should be.

James is a small business owner
•He earned $100,000 this year
•His total tax liability is $19,000
•He does not have money withheld from his checks, and usually writes a check to the taxing authority at the end of each year.
•After doing his taxes, he found that he owes $19,000
•He went solar and has a tax credit worth $10,000
•How will this tax credit affect him?
•He will now only owe $9,000!
Withholdings $0 – Liability $19,000 = $19,000 due (w/out tax credit)
Withholdings $0 – Liability $19,000 – Tax Credit $10,000 = $9,000 due!

Barles is a local news anchor
•He earned $150,000 this year
•His total tax liability is $25,000
•He is a W-2 employee, and has money withheld from his paychecks every 2 weeks
•After doing his taxes, he found that $27,000 was withheld from his checks
•Before applying his ITC he will receive a tax refund of $2,000 (27,000 – 25,000)
•He went solar and has a tax credit worth $10,000
•How will this tax credit affect him?
•He will now receive a total refund of $12,000!
Withholdings $27,000 – Liability $25,000 = $2,000 refund (w/out tax credit)
Withholdings $27,000 – Liability $25,000 – Tax Credit $10,000 = $12,000 total refund!



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Old 02-12-2017, 02:04 AM
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Posts: 8
Sorry for the multiple posts �� ... I'm fooling it from my phone and I went to edit it and they weren't there so I put both examples into one post ... then after posting that one they are all there lol ... my apologies.



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Old 02-12-2017, 02:16 AM
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Join Date: Feb 2017
Posts: 8
My apologies ... here are some examples I'd like your opinion on if they are correct or incorrect ... the reason I ask is I work for a solar company and these are the examples we were trained on ... thank you for your help

Cindy is also a small business owner
?She earned $200,000 this year
?Her total tax liability is $40,000
?She pays her taxes quarterly, and has already paid $10,000 each quarter for the first 3 quarters of the year ? totaling $30,000 ($10,000 + $10,000 + $10,000 = $30,000)
?After doing her taxes, she found that she still owes another $10,000 for Q4
?She went solar and has a tax credit worth $15,000
?How will this tax credit affect her?
?She will now owe $0
?And she will receive $5,000 back!
Withholdings $30,000 ? Liability $40,000 = $10,000 due (w/out tax credit)
Withholdings $30,000 ? Liability $40,000 ? Tax Credit $15,000 = $0 due & $5,000 refund!

Tammy is a 3rd grade teacher
?She earned $38,000
?Her total tax liability is $3,000
?She is a W2 employee and has money withheld from her checks every 2 weeks
?After doing her taxes, she found that she had the exact amount of withholdings that she needed and would neither receive a tax refund nor owe any money
?She went solar and has a tax credit worth $10,000
?How will this tax credit affect her?
?She will receive $3,000 as a refund this year!
?And the remaining $7,000 will carry over!
Withholdings $3,000 ? Liability $3,000 = $0 refund & $0 due (w/out tax credit)
Withholdings $3,000 ? Liability $3,000 ? Tax Credit $10,000 = $3,000 refund & $7,000 carry over!

James is a small business owner
?He earned $100,000 this year
?His total tax liability is $19,000
?He does not have money withheld from his checks, and usually writes a check to the taxing authority at the end of each year.
?After doing his taxes, he found that he owes $19,000
?He went solar and has a tax credit worth $10,000
?How will this tax credit affect him?
?He will now only owe $9,000!
Withholdings $0 ? Liability $19,000 = $19,000 due (w/out tax credit)
Withholdings $0 ? Liability $19,000 ? Tax Credit $10,000 = $9,000 due!

Barles is a local news anchor
?He earned $150,000 this year
?His total tax liability is $25,000
?He is a W-2 employee, and has money withheld from his paychecks every 2 weeks
?After doing his taxes, he found that $27,000 was withheld from his checks
?Before applying his ITC he will receive a tax refund of $2,000 (27,000 ? 25,000)
?He went solar and has a tax credit worth $10,000
?How will this tax credit affect him?
?He will now receive a total refund of $12,000!
Withholdings $27,000 ? Liability $25,000 = $2,000 refund (w/out tax credit)
Withholdings $27,000 ? Liability $25,000 ? Tax Credit $10,000 = $12,000 total refund!



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Old 02-12-2017, 02:26 AM
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Join Date: Feb 2017
Posts: 8
The reason I ask is, I work for a solar company and we were trained on the following examples ... is like some input as to what the answers SHOULD be, if in fact they are incorrect.

Tammy is a 3rd grade teacher
She earned $38,000
Her total tax liability is $3,000
She is a W2 employee and has money withheld from her checks every 2 weeks
After doing her taxes, she found that she had the exact amount of withholdings that she needed and would neither receive a tax refund nor owe any money
She went solar and has a tax credit worth $10,000
How will this tax credit affect her?
She will receive $3,000 as a refund this year!
And the remaining $7,000 will carry over!
Withholdings $3,000 - Liability $3,000 = $0 refund & $0 due (w/out tax credit)
Withholdings $3,000 - Liability $3,000 - Tax Credit $10,000 = $3,000 refund & $7,000 carry over!

Cindy is also a small business owner
She earned $200,000 this year
Her total tax liability is $40,000
She pays her taxes quarterly, and has already paid $10,000 each quarter for the first 3 quarters of the year itotaling $30,000 ($10,000 + $10,000 + $10,000 = $30,000)
After doing her taxes, she found that she still owes another $10,000 for Q4
She went solar and has a tax credit worth $15,000
How will this tax credit affect her?
She will now owe $0
And she will receive $5,000 back!
Withholdings $30,000 - Liability $40,000 = $10,000 due (w/out tax credit)
Withholdings $30,000 - Liability $40,000 - Tax Credit $15,000 = $0 due & $5,000 refund!

Barles is a local news anchor
He earned $150,000 this year
His total tax liability is $25,000
He is a W-2 employee, and has money withheld from his paychecks every 2 weeks
After doing his taxes, he found that $27,000 was withheld from his checks
Before applying his ITC he will receive a tax refund of $2,000 (27,000 ? 25,000)
He went solar and has a tax credit worth $10,000
How will this tax credit affect him?
He will now receive a total refund of $12,000!
Withholdings $27,000 - Liability $25,000 = $2,000 refund (w/out tax credit)
Withholdings $27,000 - Liability $25,000 - Tax Credit $10,000 = $12,000 total refund!

James is a small business owner
He earned $100,000 this year
His total tax liability is $19,000
He does not have money withheld from his checks, and usually writes a check to the taxing authority at the end of each year.
After doing his taxes, he found that he owes $19,000
He went solar and has a tax credit worth $10,000
How will this tax credit affect him?
He will now only owe $9,000!
Withholdings $0 - Liability $19,000 = $19,000 due (w/out tax credit)
Withholdings $0 - Liability $19,000 - Tax Credit $10,000 = $9,000 due!


Last edited by RM1968NJ : 02-12-2017 at 10:50 AM. Reason: Remove errors


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