The Federal Tax Credits Blog

Posts Tagged ‘money’

Question: We got the $8000 new home owner tax credit but now we have to relocate for my husband’s job.?

So my question is, do we have to pay the money back, if so how long to do have to pay it back? We are considering keeping the house and renting it out, does that change things? We would not buy another house right away in our new location either. Thanks!!

Answer: You have to pay it back if you rent the place out too. You will pay the 8k back when you do your 2010 income tax return.

Tax return mailed? What if you made a mistake?

What do you do when you realize that you made a mistake on a recently filed tax return?

Newsom Highlights Tax Relief and Job Creation for SF Business

Question: 20% Tax Credit and 1.5% fees, or no tax credit and lower fees.?

All,

I am comparing two investments. Both are taxable when invested and all earnings are tax-free when withdrawn (it’s a Roth IRA vs. a 529 plan).

The 529 plan offers a 20% state tax credit which the Roth IRA does not. However, the investment options are constrained, and the funds I would be forced to invest in have annual management fees of 1 – 1.5% per year.

My Roth IRA investments have much lower fees, about .5% per year on average.

Given an investment horizon of 13 years, which wins, taking the 20% tax credit and suffering the higher fees, or forgoing the credit and paying higher fees?

–>Adam
The money is not taxable when withdrawn in either case.

Answer: Your tax credit 20%, doesn’t tell me much right at the present. The savings or comparisons would depend on your income at the time of withdraws.

You may get a more informed opinion from the investment counselers with whom you are consulting and giving some idea or estimate based on future income, 13 years out..

On The Money / Let tax refund kick-start savings, pay off debt

Be kind to yourself. The average tax refund coming to taxpayers this year is $2,952, and some people will be so kind to themselves they will turn

Tax Deduction Tips : IRA Tax Penalties

Question: Can I claim the $8,000 home buyer tax credit now if my home will not be completed (built) and closed till June?

I’ve read conflicting reports that state that you can claim it now as long as the close is before November, 2009 & have also read that you cannot claim it till you close. CNN reported that it could be claimed on 2008 just by filing.

Answer: The new $8k credit that does not have to be paid back will be claimed on your 2009 return NEXT year.

The IRS has NOT announced any procedures for taxpayers to claim the new $8k credit on their 2008 tax returns. As it stands right now, the only one that you can claim on your 2008 return is the $7.5k credit that must be repaid.

It’s likely that the IRS will have some method in place for 2009 buyers who claimed the $7.5k credit on their 2008 returns to convert that to the $8k credit but most likely that will be done when you file your 2009 return NEXT year.

To claim the $7.5k credit on your 2008 return, you must purchase your home or receive the certificate of occupancy prior to the June 30 deadline. You must also close BEFORE you claim the credit so you either have to request an extension (Form 4868) and file once you close OR file now without it and file an amended return on Form 1040-X once you close.

Twisted Saga Involving Former Billionaire Tim Blixseth Takes Another Turn

Three states are trying to force Tim Blixseth into involuntary bankruptcy, just another chapter in t

$8000.00 Tax Credit Deadline November 30th 2009 Ventura California

Question: If I work 30 hours a week, could I get working tax credit?

Ok, so I have heard that if you work less then 30 hours a week then wouldn’t able to ge working tax credit. I work on minimum wage and work 30 hours.
How does this work?

Single and living with parents

Answer: Check it out with the Government, links below are the ones you need.

Snyder Deletes Michigan Earned Income Credit

I love Lester Graham of Michigan Watch. He asks questions others want to know but are afraid to ask. About the state budget, which will eliminate Michigan’s Earned Income Credit, Graham queried Snyder about raising working-poor taxes to support rich friends.

Ronald Reagan’s Socialist Program

Question: Student Loan vs Credit Card debt – paying off?

With my tax refund, I will have enough money to pay off my credit card or I can apply the refund to my private student loan and pay about 35% of it.

Interest Rate- Student loan = 18.65%, Credit Card = 14.5%

My student loan will not enter repayment until the summer (if this matters). I would feel better paying down my student loan so the minimum payment is lower but paying off the card sounds nice as well.

Can you give me advice?

Answer: I would pay off the credit card. That way, you only have a monthly payment for the loan instead of one for the loan and one for the card.

Letters to the Editor: March 5, 2011 – Additional Letters

Here are letters to the editor from recent editions of the Daily News

TaxPlus Tax Tip – For Profit or Hobby?