Some of this depends on what your objective is and what your income tax situation is. You can use it to get a big refund or you could reduce you withholding so that you get more cash in your pocket during the year.
The tax credit is not refundable (ie, you can only claim it up to the amount of tax you paid), however you can carry forward to a future year tax credits you were unable to claim in the year the system was installed.
Claiming the ITC is straightforward. Form 5695 is used and you get to claim 26% of the total investment in 2022.
There are standard tables that are used to calculate exemptions based on your filing status and projected income for the year that can help you adjust your withholding.
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John Gillispie
AARP
johnp250@yahoo.com------------------------------
Original Message:
Sent: 01-05-2022 10:17 AM
From: Devin Poulin
Subject: Solar ITC Practicality
Hello all,
My name is Devin and I am a new member to the group. My solar panel installation is scheduled for next Wednesday and I am trying to determine the best path forward to claiming the ITC for 2022. I generally either get a small refund or pay a small amount come tax time and need help figuring out how to increase my tax liability (to be offset by the ITC).
Does anyone have any experience modifying their allowances to reduce their taxes during the year? I plan to consult a tax professional but wanted to check in here first to see any success stories. Thanks in advance!
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Devin Poulin
devinzpoulin@gmail.com
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