The Federal Tax Credits Blog

Archive for the ‘Tax Credit Refunds’ Category

Question: Tax Credit for Windows & Doors?

I sell windows & doors. Was excited about the 30% tax credit for qualified doors & windows. I’ve heard that the Tax Credit isn’t refundable (meaning if your owed a refund you won’t get the credit).

Does anyone know if this is true?
Does anyone have a link they can share with me that explains?

I was told above by a tax preparer.

Answer: Tell your customers to check with their tax adviser! Do NOT give out tax advice if you are not a subject matter expert! Confine your pitch to, “Yes these items do qualify for the Energy Efficiency Tax Credits. But talk to your tax adviser for information specific to your situation. I’m not a tax pro and could not tell you if you qualify for it or do not or would get any benefit from it.”

Merely because someone is getting a refund does NOT mean that they won’t qualify. As long as they have a tax liability of more than the credit amount they stand to get SOME benefit from it in most cases. It’s also very important to know what sequence the credits that a taxpayer is eligible for fall in since all credits are NOT created equally.

Real Estate sales people are NOTORIOUS for giving out bad tax advice in their sales pitches. I’ve had to explain to countless folks that what the Realtor told them simply was NOT true in their case. I can’t count the number of folks who were expecting a $3,500 tax savings on $10,000 worth of home mortgage interest only to find out that that the REAL benefit in their case was a few hundred dollars at best. $10k in mortgage interest and $2k in property taxes nets most married couples in a 15% tax bracket less than $200 in tax savings.

News in brief

Here are a selection of brief news items from this week’s paper edition, and possibly a few news briefs that didn’t make it in the paper.

HOTSALE POS For Mac And Windows – Tax Setup

Question: When I filed my taxes, my tax credit wasn’t included in my refund, why is this?

I had a charitable contribution tax credit when I filed, but why wasn’t it included in my refund? Does the government have to review it first before I get the credit?

Answer: If you are talking refundable credit, just note that charitable contribution is a tax deduction, not tax credit, let alone refundable. Your tax refund is from your tax withholdings and refundable tax credits.

Tax Year 2010: Free Tax Filing Services For Low-Income Families Open Registration After December 28, 2009

San Francisco — Chinese Newcomers Service Center’s (CNSC), a local non-profit agency located in San Francisco Chinatown, will be providing free tax filing service to low-income families for the 37th year. The actual service will be on Saturdays, Jan. 23 to Apr. 3, 2010, from 9:00am to 2:30pm (excluding Feb. 13th for Lunar New Year’s [...]

First Time Home Buyer Tax Credit

Question: If I buy a house in 2008 (eligible for $8000 tax credit)..and I am already receiving $4000 in tax refund…doe?

If I buy a house in 2008 (eligible for $8000 tax credit)..and I am already receiving $4000 in tax refund…does that mean the most (additional) tax credit I can receive is $4000?

Answer: A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.

First-time home buyers who purchased a principal residence on or after April 9, 2008 and before January 1, 2009 may qualify for a $7,500 tax credit.

A year of recession

As the global economic crisis affected Malta the government in February set up a task force to provide tailor made help for industry and help the sector invest for the future.

Federal Housing Tax Credit Explained.mp4

Credit score has for all time posed troubles in the path of availing a loan. Customers with bad credit rating had always been suffering other than it’s never acceptable. But why these people are deprived of their rights? One of the powerful reasons may be the fact that bad credit rating reflects the refund irregularities of the past and refund is the most important factors of anxiety from the point of view of lenders. For extending the business as well as customer base it became necessary for the monetary institutions to pay correct attention to such a large section of people. A personal loan with no credit check is just a pace forward in providing equality to that class of customers. Similar to any extra personal loan the borrower is sanctioned the loan about without querying much about the kind of want. Consequently as a customer you can invest the loan total in necessities like house improvement, business investment, buying some assets etc. A large number of loans are obtainable for customers with bad credit rating, consequently what’s the point in going for a personal loan with no credit check?

As far as the later is concerned the interest rates are not exorbitant while any of the loans for bad credit are obtainable at sky touching rates. The interest rate for personal loans with no credit check follows the same style as any extra loan. Loan total is sufficient to fulfill the routine wants but it doesn’t mean that a customer can’t avail larger loans. You can obviously obtain that but the loan must be secured against security. The market is full of competition and therefore it’s improved to have a closer look at the lenders. For availing the personal loans with no credit check at aggressive rates the customers may approach the online lenders. Maintaining reliability in refund can solve many of the future troubles which crop up due to bad credit score. It will positively improve your credit score which will prove to be fruitful. Don’t even think of being a defaulter as it can block all the options of availing a loan in the future. Just get these precautions, go for personal loans with no credit check and breathe in the essence of monetary liberty.

The current lifestyle options coupled with innumerable credit cards and easy loan options makes it really easy to fall into a bad credit position.

Credit Counseling

A bad credit is like an incurable disease. It is better to prevent it and very difficult to cure it. You need a good doctor and this is just what ‘credit counseling’ does.

The process of credit counseling works by advising customers about how they can avoid bad debt, i.e. how they can avoid incurring debts that they cannot pay off. It is popularly called as debt counseling in the United Kingdom.

Credit Counseling and Debt Management plan (DMP)

One basic step in credit counseling is to co-ordinate with all the creditors to establish a debt management plan for the consumer. A repayment plan is worked out by coordinating with the creditor.

Debt Management Programs-Special Features:

The first benefit customers realize after joining a DMP is the debt consolidation of all their loans into one. They no longer need to make multiple monthly payments. It is just one payment and they are done.

The second best feature is that this one payment is definitely much lower than the sum of all the payments they were making before. This is because DMP reduces the interest rates charged by creditors. The reduction in payments might be 20% to 30% on an average.

The third major benefit in joining with a DMP is that your ageing accounts once again become current. Your account gets cured and you are back on a current status. Of course, records of your past will not get wiped away but gradually, they will stop appearing on the credit scores.

Credit Counseling-New roles

The trend is slowly shifting from debt counseling to credit counseling. Efforts are being made to enlighten people and prevent them from getting caught in the bad credit trap. Interesting games like the Charge Large Board Game have been introduced to teach school and college students how to pay-off credit to live a peaceful life.

This new approach ensures that the students receive the first few lessons of credit counseling even before they have incurred a drop of credit. That’s really good news!

Government statement on resource tax

THE full statement from the Government about its deal with the resources industry on its new tax.