The Federal Tax Credits Blog

Archive for July, 2010

Question: About the First Time Home Buyer Tax Credit for 2009?

Okay.
Let me start off by saying I already know we qualify.
I’ve gathered that it is a tax credit. Not a tax deduction.
So if I owe $8000 to the IRS then I will owe nothing (assuming I get the full $8000).
BUT
TELL ME
If I get a $2,000 return already.
Will I get a $10,000 return?!?

Answer: You will. Your refund will be $8000 more than it would have been without the credit, assuming that you qualify for the full $8000.

How to beat a tax assessment: keep documents, seek accountant advice

TORONTO – When James renovated his home to make life with multiple sclerosis a little easier, he thought getting a tax credit would be a simple process.

Recovery: Vehicle Tax Deduction-Claim It January 2010

Question: Help with childcare costs, UK answers please?

I’m thinking of returning to work in early May, having gone backwards and forwards over considering going to college, going back full time, I’ve decided to go to work part time, around 18 hours per week.

Because of my earnings, and me being a single parent I should get help towards childcare costs through working Family Tax Credits. Has anyone else had help this way, and if so do you know if you have to pay the first month upfront until the tax credit people get the application sorted?

I just need to know so that I can put aside enough money to pay for the first month in advance.

Thanks!
Oh, also, does the money they pay towards childcare get paid direct to the childcare provider?

Answer: Hi,

My daughter went to nursery in UK for about 3 months before we realised that we just couldn’t afford it.

Yes you need to pay the first month upfront. This worked out for us at £903 plus a deposit of £100. Then you can Claim Tax Credits. The maximum that you can recieve from tax credits is 80% of the childcare costs up to a maximum of £175 per week.

Hope this helps.

They pay the money directly to your bank account. I made my claim on the Monday when she started and received my first payment on the Thursday. It was all done really quick.

Huntington pledges money for affordable rentals

CLEVELAND – Developers in Ohio will be able to build or renovate more than $250 million in affordable apartments in the next few years, thanks to a major deal announced yesterday by Huntington National Bank.

Working Tax Credits

Employment, Earnings to Share Stage

Earnings season will still be going strong, but the main event next week will be the July employment report on Friday.

MeltDown #205 EMERGENCY ECONOMIC STABILIZATION

Question: Prisoners file for home buyer tax credit, collect millions, is this the type of fraud Obama promised to end?

http://www.usatoday.com/money/economy/housing/2010-06-23-home-buyers-credit-inmates_N.htm

By Sandra Block, USA TODAY
Despite efforts by the IRS to combat scams, thousands of individuals — including nearly 1,300 prison inmates — have defrauded the government of millions of dollars in home buyer credits, Treasury’s inspector general reported Wednesday.

The home buyer credit provided a federal tax credit of up to $8,000 for first-time home buyers for tax year 2008, the subject of the report. The credit, created to revive the housing market, was later extended to repeat home buyers. The latest credit expired with sale contracts signed as of April 30.

Answer: Yes, this is one of the many things Obozo promised to end.

A helping hand from parents is a first step

FIRST-time buyers frozen out of the housing market are turning in growing numbers to their family for a lift on to the property ladder as experts warn of a fresh squeeze on le

EXTENDED! First Time Home Buyers Tax Credit

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