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When reporting your solar tax credit on Form 1040, you will enter the amount from Line 20 of Form 5695 onto Line 16 of your 1040. This deduction directly reduces the tax you owe, potentially leading to a significant tax benefit. Accurate filing is essential, as each line must reflect your claimed credits clearly. Using the information from NM TRD RPD-41227 will help you fill this out correctly.
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