Irs Forms Tax Credit
July 31st, 2008
Question: irs tax question (bought my first home in 2009)?
I have a mortgage credit certificate program certificate that is 30%.
I have always filed 1040ez but now I am hearing about itemizing and IRS forms to fill out. I received my $8,000 in February 2009. How difficult will the IRS tax returns be now that I have a house. What paperwork am I suppose to be on the lookout for? Do I call the people that I closed with for some assistance for completing my tax return. I know I am not going to be able to file the 1040ez’s any longer. I am not married and have only one job. Please help.
The MCC was issued by the state (Texas).
Answer: Now that you have an MCC, you get to file more paperwork.
The MCC was issued by the state, right?
You will now file form 1040 with form 8396 even if you do not itemize. You may be able to claim up to $2000 as a credit against your income tax. (How much was your tax bill last year?)
The MCC has a really high 30% rate, so your interest that you can claim on schedule A will go down.
At the end of the year, you will get a form 1098 showing the mortgage interest and some other document showing how much you paid in property tax. You should also save any receipts from charity donations (particularly any letters thanking you for your donation).
When you go to file, you will fill out the 8396 first. Then you will add up the interest (then reduce it from the 8396), property tax, etc and see if the total is more than $5700/11400 (single/married). If it is, you fill out a schedule A. Then the numbers get transferred to the 1040.
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