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Client purchased solar panels in 2022 in the amount of $78,819 and I've filled out the form 5695 and it appears to be flowing to schedule 3 and it flows to the 1040 but it is not being deducted from the tax liability.
All forms and software are up to date. If I replace the amount of $78,819 with $0, nothing changes. The client still owes the same amount. It appears as though they are not receiving this credit. They owe the IRS $2,500 and this credit of $3,593 is not being applied anywhere that I can see.
Does anyone have any idea why this might be happening? They have a Schedule C in the return as well as W2s. Would that be causing this? Does the solar energy credit not apply to Self Employment income?
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Follow the money on the 1040, it would only reduce income tax, not other types of taxes, like self employment tax.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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@MHALSMER wrote:
this credit of $3,593
Is that the number on line 14 and line 15 of Form 5695?
Have you gone through the error check/review to clear any errors?