Home Energy Credit Carryforward from last year isn't being applied to deductions. Why?

I'm filing my 2023 taxes. I have carryforward of the Residential Energy Credit of $2,013 from 2022, and this amount has been pre-entered into the box (as I also used FreeTaxUSA for 2022). However, I'm finding that the credit is NOT being applied to my Federal taxes due, which is at $551. I got all the way to the end of the filing, and still that number hasn't changed.

I thought that $551 of that carryover credit would be applied to the federal taxes due to make it $0. And the rest of the Credit would be carried over for 2024. Am I missing something here?

Find more posts tagged with

Accepted answers

All comments

jihkim02

I received an answer from Customer Support. Home Energy Credits are NOT applied to self-employment taxes, which is where I received the bulk of my income in 2022.

MatthewD

Hi Jih,

So glad to hear you got an answer. Self-employment taxes can only be lowered with a payment, since they are not income taxes and subject to nonrefundable credits.