Reply To: carryovers from a MFS year to a MFJ year

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#7936
RustyShackleford
Participant

Page 24-25 of Publication 514 (https://www.irs.gov/pub/irs-pdf/p514.pdf) actually describes mechanics for carryback and carryforward for situations where MFS and MFJ are involved. It looks a bit complicated, but the main point is that you’re not screwed, you’re going to be able to take that credit at some point.

It’s tempting to assume similar rules would apply to the solar credit. But if not, it’d be a show-stopper for my doing MFS this year, despite the advantages described in my earlier post, since I could leave as much as $1000 of the solar tax credit on the table (if I use all of that $10K headroom in the 12% bracket for LTCG instead of Roth conversion).

Unfortunately I can’t wait to answer the question until I’m making the final decision on MFS versus MFJ, because the answer will inform my investment actions before year’s end, that is, the aforementioned taking of add’l LTCG and Roth conversion.

It’d really be rather shocking, if I were simply disallowed from carrying the unused credit forward, simply because of changing filing status, would it not ?