Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Residential Solar energy credit and Marrried filing separately

sldcpa
Level 2

I am preparing a 2021 return for a married couple that wants to file married filing separately so that her student loan payments will be less. Yes, I do show them the comparison of tax savings by filing married filing jointly. They purchased a solar panel system in 2021 on their jointly owned home. My question is do you just split the cost evenly and then prepare a separate Form 5695 for each return using 1/2 the cost? Or, when you look at the instructions on page 2 for form 5695 under joint occupancy,

https://www.irs.gov/pub/irs-pdf/i5695.pdf

it talks about the maximum qualifying costs that can be taken into account is $1667 for each one-half kilowatt of capacity of the property which can account to less the the amount paid. It then says the rules don't apply to married individuals filing a joint return.

So, I want to make sure I do an accurate comparison for MFJ vs MFS, but this energy credit is not clear to me.

Any help would be appreciated!

Thanks!

0 Cheers
1 Solution

Accepted Solutions
TaxGuyBill
Level 15

That amount is for fuel-cells, not solar.

They can each claim the amount they paid.

View solution in original post

2 Comments 2
TaxGuyBill
Level 15

That amount is for fuel-cells, not solar.

They can each claim the amount they paid.

sldcpa
Level 2

Thanks for your help!

0 Cheers