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Visitor II

Low tax liability making solar tax credit difficult

Hello,
I am considering putting in solar panels and I know there is a 30% federal tax credit I would qualify for. I also understand that it is a credit and only pays up to your tax liability. The problem is, if I'm reading it right, line 63 of my 1040 has my tax liability amount and it was only 1400 or so. I would get a 9k dollar credit, which I also know will rollover. However, I need the credit earlier if possible to apply it to the loan amount for the solar panels. Is there any way to do this? For instance, decreasing my federal withholding to increase my tax liability? I would take the extra from the withholding and save it. Or is there another way? I need as much of the 9k to apply to the original loan. Thoughts?

Thank you

Edit: Is it line 44 that shows your tax liability? That is higher without child tax credit. That's 4300. Does that mean I would get 4300 more refund?
2 Comments
Catalyst V

Low tax liability making solar tax credit difficult

Reducing your withholding doesn't increase your tax liability, but it would make more money available in your paycheck, rather than be refunded when you prepare your tax return next year at tax time.

Member II

Low tax liability making solar tax credit difficult

The answer, unfortunately, is no, there is no way to increase your refund to receive more in cash from this credit.