The Federal Tax Credits Blog

Posts Tagged ‘money’

Question: How does the first time buyer tax credit work?

My fiancee and I are buying a home this year. It is our first place.
I have a few questions:

Can I apply for the 1st time buyer tax credit?

Can I receive the full $7500 or does it work on a sliding scale based on income?

How does it work with my fiancee since we are filing separately? Does only one of us claim it?

Thanks for the help.
I am aware it’s a loan. I’m just trying to figure out if I can get the full $7500 back.

Answer: The “credit” isn’t actually a credit but a loan that must be paid back over 15 years, albeit without interest. There are income limits and a fairly small purchase window that the purchase must fall within to be eligible. It’s also limited to 10% of the purchase price though with housing prices as they are in most of the country that won’t limit too many of them.

The issue on how the credit will be handled on unrelated parties buying a home together has not been addressed by the IRS as of yet. The legislation states that it may be apportioned “as the secretary shall direct” but no direction from the Secretary of the Treasury (presumably to be delegated to the Commissioner of Internal Revenue) has been forthcoming as of yet. One issue left glaringly dangling in the legislation is the MAGI cap. It’s pegged at $75k on a Single or MFS return or $150k on a joint return. Whether it would be limited to 2 x $75k on Single returns for unrelated joint buyers is unknown at present.

PM starts selling carbon tax to Australia

With parliament expected to debate the carbon tax in coming months, Julia Gillard is set to sell her plan to Australian households and businesses.

Keynesian Economics is a Failure – Why is Obama trying it again?

Question: What can you do to ensure a comfortable retirement?

My mother is retiring next year.

What can she do now, within the UK personal finance spectrum (savings schemes, tax credits, pension scheme tricks and tips, discount schemes for pensioners) that will mean she can enjoy a nice lump sum on retirement?

She worked for the NHS for a time, but now works in a private health care and I’m pretty sure she has a private pension scheme too. Does that change things?

All answers ABOVE BOARD please! ]

Answer: On the personal finance level, I can’t advise you – but in terms of your mum thinking about her health in future years, she should definitely look at setting up some kind of arrangement with you / other kids/ trustworthy relatives whereby she can sign her house over to you (that is, if she is an owner-occupier).

You probably know that if your mum goes into care, she will have to use any savings above 18k to pay for her care – i.e. in effect she would need to sell her home to pay for it.

IN the long run it may well therefore make a lot of sense for her to ‘give’ the house to you – and she uses the money for herself over the years – I think legally you would need to charge has a small nominal rent.

This is all entirely legal. It means your mum could enjoy the capital in her home right now and in ‘nearer’ future years, and then if she does need to move into local authority or housing association sheltered accommodation or a care home, the state would have to pay, rather than your mum using her own money.

Something else your mum could look at is whether her existing home is in tip-top condition to prepare her for retirement – increasing age and fraility etc. Check out if you have a ‘Home Improvement Agency’ in your area. They specialise in helping over-60s and/ or disabled people stay living in their own home for as long as possible – i.e. they are entirely trustworthy and will do repairs, adaptations – sometimes for free, sometimes for a small fee.

Alcohol tax hike gets some cheers, some jeers

Starting Friday, it’s going to cost a bit more to buy your favorite adult beverage – and health advocates are delighted. For the first time in 38 years, the state has raised the sales tax on beer, wine and liquor. Officials say the increase will generate about $85 million in additional revenues. The increase raises the tax on alcohol from 6 to 9 percent, a jump advocates say will curb underage …

Harman confronts Cameron over Budget during PMQs

Question: can you claim working tax credit if a family member looks after your child?

a member of my family recently had a baby and claims working tax credit, she is struggling to find child care for her baby that starts at 7am when she starts work, and needs to no if you can still claim working tax credit or whatever its called if a family member looks after your child and is not paid and is not a registered, so no claiming money back for costs

Answer: Yes, the working tax credits can still be claimed even if you have no childcare costs. This part of the tax credits is to do with how much the wages are each year. Not sure the actual cut off point, but somewhere around £18 – £20k a year, so if wages are below that, then the Working Tax element can be paid.

The childcare element can only be paid if you use registered care like nurseries or childminders.

Sanborn Studios ‘Miami 24/7’ OK’d for $700K tax credit

LAKEWOOD RANCH — Money does change everything. Especially in the entertainment industry.

What are the biggest challenges and opportunities for Family Tax Credits?

Question: Uk Working Tax Credits.?

Hi can anyone tell me if you are suitable for working tax credits if you live with a family member in their home and have no children living with you. I know you have to work over 30 hours.

Answer: Yes, however, you must be
aged 16 or over and responsible for at least one child, or
aged 16 or over and disabled, or
aged 25 or over and usually work at least 30 hours a week

follow the link for the tax credits calculator (regarding qualifying):

http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx

To work out your tax credits if you qualify see what tax credits you can get:

http://www.workingfamilies.org.uk/asp/calculator/

UPDATE 1-UK public sector workers strike as protests hit Europe

* UK teachers, civil servants to strike over pensions * Violence flares in Athens, protest planned in Poland * UK strikes are a test for government after U-turns (Adds comments from prime minister) LONDON, …

Construction Work…50 rehabhouses no money no credit part #1 : HARD MONEY

Question: Retirement Savings Contribution Credit – Would IRA Contribution In Feb 2011 Count Towards 2010?

Line 1 of form 8880 asks for “Traditional and Roth IRA contributions for 2010. Do not include rollover
contributions”.

A recent Yahoo article said the deadline for contributions was tax-day, but I do not see this in the instructions.

If I contribute this week (February 2011), can I apply it towards my 2010 Retirement Savings Contribution Credit?

-Frank
Thanks to all! Cleared it up for me.

Answer: Yes ! Just make sure when you send it to your IRA company that you check the box or whatever that says its for your 2010 contribution. You can deposit all the way up to tax day. You can even file your taxes before you make the contribution, then make the contribution after you get your refund as long as its before tax day.

How Boomers Can Protect Assets in a Divorce

People in various stages of life have different priorities when it comes to divorce: Younger divorcees tend to focus their energy on child custody while baby boomers consider issues like Social Security benefits, pensions and retirement savings.

Boost Your Tax Refund with IRAs