MHALSMER
Level 1

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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