The Federal Tax Credits Blog

Question: Stimulus eligibility for new home buyer?

I recently bought a house in July of 2008, and I understand that Bush passed a law that gave a $7500 tax credit/loan to new home buyers. The loan would be repaid over 15 years and it would come out of your taxes. With Obama’s new stimulus, I’m confused on if that affects me at all. I know that the new housing deal is if you buy a home between January 2009 – December 2009, but I’ve read that this stimulus may also affect the previous housing bill? Can anyone clear this up for me?

Thanks!

Answer: I do think this will be signed as is:

Temporary credit for home buyers: The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit’s expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.

It will not affect anyone buying in 2008.

Economic collapse: Don’t blame the free market

A more realistic view is that a housing boom and bust happened to strike a fragile financial system whose fragility was worsened by ill-conceived government interventions.

Republican hypocrisy exposed: top GOP lawmakers take credit for stimulus bill passage

Question: Why do Republicans like to borrow and spend?

Republicans like to say “i want to cut your taxes”

Then when your back is turned they take out the federal credit card and borrow over a trillion dollars.

For some reason they never offer a plan to pay any of the money back.

Ane we accept this style of government year after year.

Because we don’t feel the imediate pain of borrowed money. It allows us to pretend that it didn’t happen. Until the value of the dollar tanks. Until we get to the point where we have to beg China to buy our bonds.

In 40 years China will be the #1 country in the world.

They owe their success to our willingness to send all our manufacturing jobs to China. In return we get to pay lower prices at Walmart and Target.

So when you see a Congressman or Senator pat him on the back for a job well done.

Speak truth to power.

Mr. News

Answer: The whole issue is the spending part of that equation. Unfortunately both parties love to spend spend spend. One party like to use excessive taxes and the other likes to borrow. What we need is someone to cut spending and hopefully McCain is the guy to do that..

EXTEND & PRETEND: Stage I Comes to an End

Both came to an end at the same time: the administration’s policy to Extend & Pretend has run out of time as has the patience of the US electorate with the government’s Keynesian economic policy responses.

5-year extension of targeted jobs tax credits: Hearing before the Subcommittee on Savings, Pensions, and Investment Policy of the Committee on Finance, … Congress, first session, November 22, 1985 $14.99 This volume is produced from digital images created through the University of Michigan University Library’s large-scale digitization efforts. The Library seeks to preserve the intellectual content of items in a manner that facilitates and promotes a variety of uses. The digital reformatting process results in an electronic version of the original text that can be both accessed online and used to c…

Wage subsidies and jobs for the disadvantaged: Applying the targeted jobs tax credit in an operating environment (Manpower and human resources studies) …

Targeted Jobs Tax Credits; Hearing Before the Subcommittee on Select Revenue Measures of the Committee on Ways and Means, House of $29.04 Title: Targeted Jobs Tax Credits : Hearing Before the Subcommittee on Select Revenue Measures of the Committee on Ways and Means, House of Representatives, One Hundred Third Congress, Second Session, September 29, 1994 Publisher: Washington : U.S. G.P.O. : For sale by the U.S. G.P.O., Supt. of Docs., Congressional Sales Office Publication date: 1995 Subjects: New jobs tax credit — United State…

So Where Are the Jobs?

Question: Flexible spending (cafetieria plan) option: Good or bad?

I signed up for a dependent care FSA this year. The total amount available per calendar year is $5000.00 and I chose the whole amount. I get paid weekly, so, I have $96.15 taken out of each paycheck.

My son’s daycare is $145 per week. I know that I will use the $5000 prior to year end so am not worried about “using it or losing it”. However, I was wondering if this is a good plan and how it will affect my child tax credits when I do my tax return next year? Also want to know if this account can also be used for my son’s medical prescriptions & Dr. visits? I heard that you may not be able to if you have only a dependent care plan set up.

Do you ultimately feel the FSA is a good advantage and why?

Thanks

Answer: You cannot use FSA-Dependant Daycare for Unreimbursed Medical Expenses (UME). However, if your employer offers an FSA for daycare, they probably also offer a similar program for UME (either a cafeteria plan or a Health Savings Acct).

This program will not effect your child tax credit, but it will effect your Dependant Daycare tax credit (you probably lost it). But the benefits you see from using the 125 plan, usually far outweigh the Dependant Daycare tax credit. Because you did the 125 plan, your tax refund will be smaller, however, you probably saved more than that throughout the year.

With the Daycare tax credit, you probably would have saved $600-$1050 (depending on your income level, higher your income, the lower the credit). With the 125 plan, you probably saved $950-$1950 over the course of the year, higher the tax bracket, higher the savings. Even though your tax refund may be smaller, you are getting larger paychecks.

To know for sure if this is a good plan for you, I would have to know a bit more information about your taxable income, but for a vast majority of taxpayers, the Cafeteria plan that you are doing is a good deal.

Bipartisan Meeting on Health Reform: Part 2

House Session 2010-04-13 (19:35:01-20:35:48)

Question: I bought a home in January 2009. Do I qualify for the $6500 credit now under consideration?

I am not a first time home buyer.

Answer: It’s for those who purchase after December 1, 2009, and who have owned a home for five previous years. Sorry!

Nov 2009 Home Buyer Tax Credit