The Federal Tax Credits Blog

Archive for the ‘Education Tax Credits’ Category

Question: Why is the first time homebuyer 2008 tax credit limited to purchases after April?

My hubby and I purchased our first home on February 11, 2008. In the past year we have incurred many cost associated with maintaining/owning a home and were hoping the new tax credit ($7500 loan) would benefit us. Not so because it is limited to those purchased after April 8, 2008 – why? Meanwhile our home value has diminished by 15k and we are really not seeing any added benefits to being a homeowner. Perhaps we should skip out on our mortgage, go into foreclosure, maybe the bailout will help save us then! While we are at it, we’ll file for bankruptcy and let the burden of our irresponsible behavior be left to the tax payers. Why does being a honest responsible American never pay off?

Answer: The simple answer is that the tax credit was passed in April and it was intended to stimulate more activity in the housing market. Making it retro-active would do nothing to entice buyers, so they made it effective as of the date it was passed.

I feel your pain. I bought my first house in September 2007 and I don’t even want to know what its worth right now.

While you could possibly get some sort of relief if you went into default, I don’t think its the best option.

The fundamental problem is that you see your house as an investment that should always be going up, and as soon as it goes down, you get worried. The fact is that your house is a place to live. If it makes you some money, then that’s nice, but that’s not the purpose of buying a house. You still have the house you agreed to buy, your mortgage payment should be the same, so there’s nothing to complain about. Keep making your payments and keep living in your house. If you’re viewing your house as an investment, then ride out the wave and wait for things to recover, have the same long-term focus that you should have with any investment.

When Will Houses Appreciate? Not Until Supply Bloat Clears

The supply of homes for sale threatens to back up due to expiration of a federal tax credit for homebuyers. That could push out the day that homeowners will see properties consistently appreciate again. And it could further dash homebuilding.

Mission of Hope Christmas Drive 2008

Report Finds Struggling Households in Hinds County

When a man lost his job at a trucking company recently, he started having trouble covering his monthly expenses. Though he found a part-time job washing dishes at a local restaurant, it only paid a portion of his month expenses, but not his car note.

Adam Bold – Back to Basics: Rebuilding Your Personal Wealth

Question: Va Home Loan Question?

My Father just received his Certificate of Eligibility for a VA home loan. Does this guarantee him the loan? What are the next steps? Also, his credit is below average, can he use me as a cosignee if I have an above average credit score? We’re hoping to get our first house this year and take advantage of the new home Buyers Tax Credit.

Answer: No, the bank makes the loan. VA makes it possible that you don’t need a down payment (or very little) and possibly the seller can pay closing costs if written as part of the bid. There is also the VA funding fee (which can be financed)- your father will be exempt if he is receiving compensation for a service connected disability.

http://www.homeloans.va.gov/lgyfaq.htm

These FAQ’s should help.

I’m not sure about cosigning, but the loan can be put into both your names.

Few teams for home-schooled athletes

COLUMBIA — Only 15 years old, Hannah McGennis tightly clutched the MVP trophy awarded to her for exceptional play. Hannah and her team, the Central Missouri Saints, were national champions after defeating the Thesa Riders of Fort Worth, Texas, on March 20 in the girls 16-and-under National Christian Homeschool Basketball Championships title game. “Our team enjoyed it because we’re the little …

Who our tax dollars went to and WHY! – The Crisis of Credit Visualized Part 1

Daw: Tax software so quick that missing something is easy

Readers register complaints after tax software makers admit to missing a tax reduction in 2009. But companies say users miss things, too.

The Student Loan Scam: The Most Oppressive Debt in U.S. History – and How We Can Fight Back $22.95 Alan Collinge never imagined he would become a student loan justice activist. He planned to land a solid job after college, repay his student loan debt, and then simply forget the loans ever existed. Like millions of Americans, however, in spite of working hard, Collinge fell behind on payments and entered a labyrinthine student loan nightmare.High school graduates can no longer put themselves thr…

In Canada – The Politics of Choice.(tax credits for private school tuition): An article from: Phi Delta Kappan $5.95 This digital document is an article from Phi Delta Kappan, published by Phi Delta Kappa, Inc. on September 1, 2001. The length of the article is 1361 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle:…

Open for Questions: Higher Education

Question: Can I claim the American Opportunity Tax Credit if I started as a undergrad student but am in grad school now?

I am trying to fill out my taxes but didn’t know if I qualifed for the American Opportunity Credit or if I would have to file with Tuition and Fees Deduction. At the beginning of the year I was still taking undergraduate courses and then in April I started my graduate level courses. Which one should I claim?

Answer: Yes you can. But you can only apply the amount that was used for the 4-year term (the beginning of the year). That means you cannot add both and apply them. The tax site I used asked how long I was an undergrad and calculated it like that. You cannot get the tax credit and the Tuition and Fees Deduction together. I would get the tax credit though because it’s more back to you.

BENEFITS

Dinner. 6 p.m. Wed. Includes drink and dessert. St. James Episcopal Church Parish House 115 Walnut St., Bristol. Free. 215-788-2228.

Dr. Jill Biden on Good News for Higher Education