turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Solar panels and tax liability

How would I increase my tax liability inorder to claim more of my solar panel tax credit? Would I lower my withholding at work?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
rjs
Level 15
Level 15

Solar panels and tax liability

Withholding has nothing to do with tax liability. Your tax liability is the total tax on your income for the year, regardless of how much is paid by withholding. It's based on your income minus deductions and nonrefundable credits. Here are a few things you could do to increase your tax liability.

 

  • Earn more income.
  • Increase your income by selling investments at a profit, by winning a large lottery prize, or by withdrawing money from your IRA or 401(k) (if you can do so without penalty).
  • If you itemize deductions, reduce your deductions. For example, you could give less to charity.
  • Claim fewer dependents.
  • Don't claim other nonrefundable credits, such as the child care credit or education credits.

 

I'm not sure that this approach would really save you any money. It might just make you feel better because you see a larger solar credit on your tax return, but you could end up paying more tax in the end. In particular, eliminating one credit in order to claim more of another credit doesn't really accomplish anything.

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies