The Federal Tax Credits Blog

Archive for the ‘Tax Credit Forms’ Category

Question: Have i filled in my working tax credit form wrong?

Its the first year my partner and I are claiming tax credits and I’m a little confused! There is a section of the form to fill in our salaries for the tax year 09-10 April to April, however since April my partner has changed jobs and is now on a slightly higher salary, there isn’t a section to complete about your circumstances since April 10 and was wondering what to do if anything? My partner thinks that we don’t have to do anything until they review the claim in April 2011 but I have heard of horror stories of people having to pay back thousands because they filled in the forms wrong or didn’t inform HMRC when they changed jobs, I obviously don’t want to get in trouble or claim anymore than we are entitled to. I would put in a covering letter but I know the form gets checked my a computer and whenever I phone I’m on hold for such a long time. I thought I would see if anyone could help before I rack up my phone bill trying again. Thank you

Answer: send in tthe form then send in separate notice for change of circumstances and this be then be processed and keep you right

IRS says tax season to start on time

Following last week’s tax law changes, the Internal Revenue Service announced last week the upcoming tax season will start on time for most people, but taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns.

IRS TAX TIPS: Making Work Pay – Retirees (ASL, Captions & Audio)

Question: How do I claim the FTHB Tax Credit on a 2008 Amended Return?

Do I need to wait for a new version of the 1040X to be created or do I use the normal one? Is there another tax credit form that needs to be attached to the 1040X? Etc. Etc.

Answer: Excerpt from Yahoo! Finance news article:

Question:
“I will qualify as a first-time homebuyer and am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?” – Adam Billings, Knoxville, Tenn.

Experts: Robert Dietz, economist, National Association of Home Builders. Answer:
Yes. Taxpayers get everything they’re already entitled to plus the credit. Think of it as a dollar-for-dollar reduction in your tax liability that continues beyond zero. So, if your total tax bill is $5,000 before the credit, your tax bill drops below zero and the government owes you $3,000.

If you owe $5,000 and had $5,100 withheld during the year, you would ordinarily receive a $100 refund but instead, the IRS would cut you a check for $8,100. If you had $4,900 withheld and would have had to send the government $100 when you filed, you would get $7,900 back.
This refundable feature is very favorable to first-time homebuyers because the credit will give the majority of them more back than they paid in. It is also applicable to 2008 or 2009 taxes, so taxpayers who have already filed for 2008 can file an amended return and get the credit.
Source(s):

http://finance.yahoo.com/banking-budgeti…

Use the current 1040X

Readers’ tax questions answered

Understanding Canada Revenue Agency rules and how our tax system works can only make you a better investor

Question: what forms should be submitting with IRS form 5140 (first time homebuyers tax credit)?

I received a letter from the IRS asking for a copy of my settlement statement as well as something that would include property tax transfer (or sometimes called tax stamps). I am somewhat confused on where to obtain this information, or if the settlement statement will suffice? I tried calling the number listed on the paperwork, but, it is the IRS…. I was on hold forever!
Anyone else have to do this?

Answer: 1040X, Form 5405 and HUD-1 (or RESPA) closing statement provided by title company. That document with columns and lots of lines, showing the whole sale/purchase/loan transaction. You received copies at your closing and should keep it for your tax filings and for the sale of your home. There is transfer tax declaration, although the stamps themselves are generally attached to the deed for recording. Takes 12-18 weeks processing, and sending along the HUD-1 avoids delays.

Reading the 5405 instructions, and information on irs website is very helpful and easier than holding.
www.irs.gov first time home buyers credit

Martin Marietta Materials, Inc. Announces Third Quarter Results

Martin Marietta Materials, Inc. today announced results for the third quarter and nine months ended September 30, 2010.

Question: New $8000 tax credit, when can you claim it?

I know you can claim it on your 2008 taxes, even if you purchased in 2009 by an amendment. But can you claim it prior to buying a home in 2009 knowing your going to, and you have an offer that just hasnt closed yet? What if you have? Are there penalties, or should you reammend your taxes? I have sent in the ammendment form for the $8000 tax credit on advice from an accountant who seemed as though he knew what he was talking about, but what do i do if this is not the case? It really is an honest mistake if this isnt able to be done.

Answer: You can’t file for the amend and get the tax credit until the house has been closed because they need to see all of the closing paperwork.

I’m waiting on it. It’s taking forever to get this house.. but as soon as you close.. You can go file the amend and get the money.

BowLeven Plc – Issue of Equity

BowLeven Plc – Issue of Equity

Can you use the 8000 tax credit toward your closing costs with regard to real estate?