The Federal Tax Credits Blog

Archive for the ‘Homeowner Tax Credits’ Category

Question: how do i apply for the new homeowners tax credit?

Answer: You don’t apply for the credit. You can claim the credit after you close on the house on either this years taxes or next years taxes.

Tax Code Reform Gains Traction in Congress

The accounting profession’s drive for a more predictable and user friendly Federal Tax Code seems to be gaining traction with at least one segment of Congress: the freshly-elected corps of Tea Party activists and their conservative allies in the House and Senate.

Time Running Out To Gain Homeowner Tax Credit

Fitch Affirms Moreno Valley USD, CA’s GOs at ‘AA-’; Outlook Stable

In the process of routine surveillance, Fitch Ratings has affirmed Moreno Valley Unified School District, CA’s bonds as follows:

Rep. Pascrell speaks on HR 3590 – Service Members Home Ownership Tax Act of 2009

Question: First time home buyer tax credit?

I have already filed my 2008 taxes and received my refund. I bought a new home last month and now qualify for the $8000 tax credit and considering amending my 2008 taxes.

Here is my question. I paid 7000 in taxes for 2008 since I had little to deduct. Am I better off to amend my 2008 taxes because my 2009 deductions will be better and my taxes lower or am I sacrificing by amending my 2008 taxes because I only paid 7500?

Are there other ramifications to my 2009 taxes by claiming the credit in 2008?

Also if you pay in $7500 in taxes do you get 8000 or “up-to” $8000?

Who can I go to to see me thru all this if i used turbotax this year for my initial filing?

Answer: First the tax credit is a refundable credit that if you qualify, you will receive over and above your normal tax refund. So it is not based on your other deductions, since it is not an income tax deduction.

Next the credit is based on 10% of the purchase price on the home up to $8000. So if you purchased for $70,000, the credit would be $7000 and if you purchased for $100,000, the credit would be $8000. There are income limitations associated with the credit, so this could be a reason to either claim the credit with the 2008 or 2009 income tax return. If your income in either year is too much to be able to receive the complete credit, you are able to decide with year to take the credit on.

If you decide to claim the credit on your 2008 income tax return, you are able to take your information to an experienced tax professional to help you prepare the amended tax return, form 1040X.

I have attached a link below to the form 5405, First Time Home Buyers Credit, so you can check to see if you meet all the requirements to claim the credit.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

TAX GUIDE 2011: How to take advantage of sweeteners on this year’s 1040

This year’s tax season will look a lot like last year’s, with a few changes. New sweeteners include elimination of the phase-out of itemized deductions and personal exemptions for higher-income taxpayers.

Harbor Financial Introduction

Question: How long does it take to get the $8000 First Time Home Buyer Tax Credit back after ammending your return?

I li ve in Massachusetts if that makes any difference.
@ the kid – You can ammend your 2008 return to get the refund in 2009

Answer: 16 to 20 weeks. Amended returns cannot be e-filed. The credit for all purchases that closed after 11/7/2009 must be filed on paper, whether as an original or amended return.

Home Prices Fall to 9 Year Low

A Minneapolis homeowner knows first hand what new statistics show: nationwide home prices are at their lowest level in nearly nine years. Jim Blackwood bought his home in North Minneapolis in February of 2010. The home was in foreclosure and was condemned.

First time Home Buyers can get 8000

Question: Question about $8000 tax credit for first time home buyers?

I’m a first time home buyer thinking about using a 203k loan to purchase and renovate my first home. (I live in New Orleans by the way) I have a little money saved up, but not as much as i’d like to. I heard the $8000 tax credit was extended to april 2010. My question is, is this something I should really be pressing to take advantage of? in other words, should I be hurrying up to find and go through the process of buying a house even though I would rather save up more of my own money first? I figured that, even with the $8000 credit, I was planning on spending roughly $8000 of my own money for the downpayment, closing costs, etc. So, after the tax credit, it would balance itself out to zero money spent. do you think this is a good idea for me to actively pursue buying a house before I feel that I’m ready to just because of the $8,000 credit?

Answer: If you are being driven only by the tax credit and wouldn’t feel comfortable buying a house now otherwise, perhaps you should go with your gut feeling and wait.
Owning a house and renovating is an expensive and stressful experience.
You are talking yourself out of it and probably rightly so!
Sounds like you have a lot of common sense.
Just wait until you are ready – housing prices are going to rise over the next several years, but it will be slow.

Sweeteners added to recession-battling tax breaks

Still need to do your taxes? Here is an overview of some of the changes made this year

Tax Credit Extended