Posted on: 03rd Jun, 2009 04:56 pm
Hello everyone!
I was originally under the assumption that the first-time homebuyers tax credit was just a deduction you could take from your taxable income but I was just informed from someone at work that this tax credit is actually a refund you get with your tax return?
Is that even right??? So the government is going to give me $8000 just for buying a house this year?
Does anyone know anymore about this tax credit?
I was originally under the assumption that the first-time homebuyers tax credit was just a deduction you could take from your taxable income but I was just informed from someone at work that this tax credit is actually a refund you get with your tax return?
Is that even right??? So the government is going to give me $8000 just for buying a house this year?
Does anyone know anymore about this tax credit?
Scott, that is correct. It is not a deduction which reduces your income base. They issue a check for $8,000.
Hi Scott,
I agree with Eric. The tax credit is completely refundable, which means the Govt. issues you a check of $8000 or the amount you may qualify for, as a refund of the tax credit. You need to complete IRS Form 5405 to ascertain your tax credit amount. Then, you claim this amount on Line 69 of your 1040 income tax return. The Govt. will verify your claim and send you a check for the amount of the refundable tax credit.
I agree with Eric. The tax credit is completely refundable, which means the Govt. issues you a check of $8000 or the amount you may qualify for, as a refund of the tax credit. You need to complete IRS Form 5405 to ascertain your tax credit amount. Then, you claim this amount on Line 69 of your 1040 income tax return. The Govt. will verify your claim and send you a check for the amount of the refundable tax credit.
scott is right
scott, the $8000 is the maximum amount, based on the purchase price of the home you buy. should you buy a home priced at less than $80,000, you will be limited to 10% of that purchase price ($70,000 = $7000 tax credit, for example).
what you've been advised of above is correct - make your home purchase prior to december 1, 2009 and you can either file an amended tax return for tax year 2008 and get your refund immediately, or file it with your 2009 tax return (probably a better bet if you buy late in the year).
what you've been advised of above is correct - make your home purchase prior to december 1, 2009 and you can either file an amended tax return for tax year 2008 and get your refund immediately, or file it with your 2009 tax return (probably a better bet if you buy late in the year).
