The Federal Tax Credits Blog

Posts Tagged ‘credit’

Question: I have a question about tax credits. We just had replacement windows installed,?

and were told that we qualified for the $1500 federal tax credit. We assumed we’d get $1500 back when we filed our taxes next year. However, I recently found out that unless you owe money at tax time, in other words, underpaid during the year, you will not get anything back. Usually we overpay during the year, and get back about $2000. I just had this idea, what if I changed our federal exemptions, so we’d pay alot less until the end of the year (more in our paychecks each week), then at the end of the year, we may get back the $1500, and have paid less during the year. Does that make sense?
The windows cost $8,000. We own a two family house.

Answer: It doesn’t matter whether or not you owe, it matters whether or not you have a tax liability.

The credit is non-refundable, which means it lowers your tax liability, but if your tax liability reaches $0, you don’t get the remaining credit refunded to you.

Example, lets say you qualify for the full $1500 credit. Your tax liability comes out to $1200 and you had $3000 withheld during the year. Without the credit you’d get $1800 refunded to you ($3000 paid minus $1200 tax liability). Now, when you apply the $1500 credit, your tax liability will be reduced to $0 and you’ll get all of your $3000 withholding back, but you lose the extra $300 worth of credit. The net result is a tax refund that is $1200 bigger than it would have been without the credit.

If your tax liability is already $0 then you won’t benefit from the credit at all. If your tax liability is more than $1500 before the credit, then you’ll benefit by $1500 by getting a bigger refund or owing less at tax time.

Keep in mind that the credit is 30% of the cost of windows, not including installation costs, so you would have to spend $5000 or more on the windows (not including installation) to qualify for the full amount.

Realty InSites: Bush tax cut extension includes property-related conditions

Congress’ passage of year-end legislation extending the Bush-era tax cuts made holiday headlines. But imbedded in the HR4853 Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 are a few under-reported provisions of import to homeowners, builders, commercial property owners and/or investors.

The Window Gallery-Federal Government Tax Credit for Windows

Question: Am i eligible for the head of household credit and child care credit?

I haven’t filed my taxes probably since 2002 and haven’t been employed since the beginning of 2005, and since then have been raising my daughter. i was wondering if im still able to apply for the head of household credit and some of the other credits for the child care?

Answer: I would suggest using a program like TurboTax. It asks you all the important questions and then will tell you what is allowed. It really helps prevent you from making mistakes.

Pitkin County landfill offers credit to residents

ASPEN — All Pitkin County households are now eligible for a $100 credit at the county landfill.

Farm Work Household Certification

Question: How does a woman on SSI file and get child tax credit?

My fiance is on SSI (perminently disabled) but has two kids. She cannot work but then how does she get the child tax credit? Can she file taxes if she is on SSI?

Answer: If her only income is Social Security, then she does not have a filing requirement , so she would not be eligible to claim the child tax credit, nor the Earned Income Credit, She has no taxable income, and no Earned Income

1-800-829-1040

Tax tips: Most need to file a tax return each year

Q: Do I Have to File a Tax Return?

Is the child tax credit good for families?

Question: low in come family’s – on benefits- tax credits-and child tax credits is it an un fair change or not?

Changes to child tax credit and Working Tax Credit
Budget 2010 announced several changes to Child and Working Tax Credits, including:

•raising the second withdrawal rate (the amount taken off your tax credit entitlements depending on your income) to 41 per cent from 6.67 per cent
•lowering the amount of your income not taken into account from £25,000 to £10,000, and then £5,000
•increasing the rate at which tax credit awards are reduced
•removing the one-off payment for new workers over 50 from April 2012
•no child tax credit from April 2011 for families earning more than £40,000 per year
•aligning the income levels (thresholds) for the child and family elements
•removing the baby element from April 2011
•increasing the child element by £150 above inflation in April 2011 and £60 above inflation in April 2012
Tax credits (Money, tax and benefits section

Answer: It’s very fair. There is no point us paying benefits to people on 50k a year!

Few families DON’T qualify for this benefit! I’m the only one among my friends that can’t claim – cos our income is 100k. But my friend who is a solicitor and his wife is a nurse can claim it! Crazy!

I’m glad I get my child allowance though – it’s all people like us ever get in return for our taxes!

Looking at the Top News Events from Around Ashley County in 2010

On July 1, the county sales tax rate dropped by one-half percent after the bonds used to finance the construction of the new county jail were paid off.

calculate your credit card processing effective rate – how to

Question: tax credit question? U.K. only please?

Hi, last year my husband earned approx £18500 whilst I stayed at home with the children and took care of them. We were paid approx £3500 in tax credits over the year. This year we filled out the review pack and stated that I am now working (self employed) and our joint income would be £30000 approx. They said our award for this year would be the same as the amount hadn’t gone up or down by more than 25k. The situation has now changed and I am on my own earning £12000 roughly and I have checked the tax credit calculator online and it seems that although we have lost my husbands £18,500 the tax credits dont change? It will be a struggle on my wages and tax credits but I want to work so any ideas? Really cannot afford to get this wrong!
Cheers,
Donna.
should have said my income is £12000 before deductions.

Answer: Wish I could help you…but I think you might have better luck asking this in the tax category…good luck!

12 Important Financial Steps to Take in 2011

With the New Year right around the corner, it is time to start planning for 2011.?? Obviously, there

Maximize your Federal Income Tax Refund in 2010, 2011