Tax Credit question on Labor

aleitzell said:

I have installed a massive 13.4 KW ground mount system on my property. I paid my two teenage sons to dig and bury 250' trench to the house. They assisted in most of the outdoor prep and installation. Does anyone know what records I'd need to be able to claim their labor for the federal rebate?

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teal95 said:

Probably opening a can of worms if claiming what you paid them. You might be asked to show tax deductions, unemployment contributions...

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z_zk_z said:

If you take a look at the tax form, you will see that there is no breakdown and IRS just requires you to enter a single dollar figure which reduces your Federal taxes by 30% of the amount spent on the solar and entered on the tax form. Of course, If you get audited by IRS, then you need to show the proof. You need to talk to a CPA because I am not sure if you can deduct your own labor or your two teenage sons unless your sons file their own taxes and report the money you paid them as income on their returns.

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Hedges said:

This is said to be a way to deduct college expenses off your taxes.

Can my business pay my child's college tuition? - Tax Hive

Your business cannot directly pay for your child's college tuition, but you could hire your child and pay them wages to be used for college tuition.

taxhive.com

I think the dollar limit is only for their income to be tax free.

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aleitzell said:

I believe what I have paid them is less than the threshold to file taxes for a single filer. I wouldn't write off my own labor, as that is not an expense.

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