The Federal Tax Credits Blog

Posts Tagged ‘tax’

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: 1 year work history, was in college prior, will I be qualified for an FHA home loan?

I have been working for about 1 year now. 8 months at my current job and 4 months at an older job. Both jobs are in the same line of work and my pay increased moving from the first job to the second. Prior to that, I attended a community college for 2 years. My field of study in college is not the same as my current field of work, but I’m not sure if that matters? I did not get my A.A. degree because things came up and I had to leave school to go to work. I only have 1 year of income tax returns, but have $8000 saved up for closing costs (my parents are willing to pay the downpayment as a gift). I make $2220 a month before taxes and have no debt whatsoever. Credit score is in the range of 550-600 as I applied for a credit card not to long ago. My question is: under these circumstances, what are my chances of being accepted for an FHA home loan? I am planning to buy a house in the $75,000 – $80,000 range. Thanks.

Answer: Job wise you are fine. You will just need to provide documentation that you were in college prior to your one year job history. The credit score is what will get you. Most investors who buy the FHA loans after closing will not accept a middle score below 620. Get that score up to show you know how to manage money & are a responsible person. Applying for one credit card would not do that much damage to your scores. You have some other issues. Clean it up.

Good luck.

CHARMING 3 BEDROOM 2 BATH HOME IN A FANTASTIC NEIGHBORHOOD!

Question: How will I claim the childcare credit for next year?

My daughter is 2 years old. Last year, I didn’t claim any childcare credit because my mom was the caregiver, and it wouldn’t make any sense to deduct the amount and add it to her tax bill.

This year, we will be sending her to a daycare center that charges around $1200 a month. Do I need to get their tax id in order to claim it, or can I just put down their official name and address to claim it? Thanks.

Answer: Most centers will give you a form that you can use for your taxes. It will show them and their id, as well as your info and what you paid for care. Ask about it now to reassure your concerns.

Questions And Answers July 5

Pay Equity—Gender Gap 1. CATHERINE DELAHUNTY (Green) to the Prime Minister: Does he stand by his statement about equal pay for women: “The law at the moment actually provides quite clearly that it’s against the law to discriminate on the basis of …

Key Investments for Middle-Class Families

Question: Legal help needed please!!!?

My fiance and I were about to buy our first home – $260K. After we found our dream house, we spent about 2 months negotiating, getting paperwork in order, etc. Finally we signed the contract (and so did the seller) and we paid our earnest money. We also gave notices to our respective apartments that we are moving out. We submitted a lifetime worth of paperwork to the bank to get approved for a loan.Yesterday, we get an email from seller that he has changed his mind and wants to settle this amicable out of court. Looks like we are also going to miss the $8,000 tax credit incentive. Our situation is aggravated by the fact that we have 3 pets and there are very few apartments, if any, that allow 3 pets. What are we entitled to? What amount is reasonable to ask for, as a compensation?

Answer: Depending on which unknown state you live in:

1) You made justifiable reliance on the sellers contract that you both signed
2) He has breached the contract
3) The remedy for your damages fall into the categories of equitable and legal
4) This means that you can recover the money you have lost that you would have received from the government (legal) and the property that you are due (equitable)

The courts like to play the fairness card, this means that if you acted on someone elses word or contract and the other party fails to deliver on said promise/contract, the court tries to make the burdened party whole again.

I doubt you’ll get an answer other than this from an attorney or your agent.

Best of luck to you

Tracking money gets cheaper

Back in 1987, when cellphones were the size and heft of a solid brick, a Sacramento software designer created the Money Diary. It was a pocket-sized, hand-held computer for tracking your spending. Sold in local electronics stores, it cost $199.

Tax Deduction Tips & Advice : How to Use Gambling Losses as a Tax Deduction

Question: Did Obama’s aunt SIGN UP for her tax CREDIT as an UNDOCUMENTED IMMIGRANT?

Part of the economic stimulus bill that was just passed by the House (except for House Republicans and 11 Democrats who voted against it), includes “tax credits” of $500 per person and $1,000 per couple. (Note: if the recipients pay no taxes, it’s not a credit, it’s a handout.) Apparently the wording specifically disqualifies “nonresident aliens” – Washington-speak for illegals – people with no Social Security numbers could still get the cashola:

Undocumented immigrants [liberal reporter-speak for illegals] who are not eligible for a Social Security number can file tax returns with an alternative number. A House-passed version of the economic recovery bill and one making its way through the Senate would allow anyone with such a number, called an individual taxpayer identification number, to qualify for the tax credits.
Is she coming out of hiding in the White House’s rose garden to collect her 500 dollars for not working?

Answer: I am sure she is. And just like the mother in law mooching off the American people living in the White house. Why do we have to pay for that. Throw her out.

Black economic gains reversed in the Great Recession

Baltimore– Growing up black in the segregated 1960s, Deborah Goldring slept two to a bed, got evicted from apartment after apartment, and watched her stepfather climb utility poles to turn their disconnected lights back on. Yet Goldring pulled herself out of poverty and earned a middle-class life – until the Great Recession. First, Goldring’s husband fell ill, and they drained savings to pay …

Save Our Homes Budget Cuts Action