New home buyer Tax Credit question

[bigb996]

I was going to post this in LEPR but thought it may be more suitable for open forum. Im looking to purchase my first house. My understanding on this "tax credit" from reading it is that you get up to 8k max based on 10 percent of what the home cost. Im looking to purchase a house in the category, i meet the annual income requirements and you dont have to pay it back(even though you technically will somehow). My question is if i buy a house and close buy the required date, how long does it take to get the return? and do you actually get 8k in a check to your bank account? obviously you cant owe any money to the government or they will subtract that amount. If i have already filed my taxes and have gotten my refund this year will i have to wait until next year to get the credit?

[The Lazy Destroyer]

I was going to post this in LEPR but thought it may be more suitable for open forum. Im looking to purchase my first house. My understanding on this "tax credit" from reading it is that you get up to 8k max based on 10 percent of what the home cost. Im looking to purchase a house in the category, i meet the annual income requirements and you dont have to pay it back(even though you technically will somehow). My question is if i buy a house and close buy the required date, how long does it take to get the return? and do you actually get 8k in a check to your bank account? obviously you cant owe any money to the government or they will subtract that amount. If i have already filed my taxes and have gotten my refund this year will i have to wait until next year to get the credit?

The way I understand it is that it appears as a credit towards your income taxes. If you have already filed it you can possibly file some type of "extension" (not sure what the correct vocabulary is), otherwise you will need to do it on your 2010 taxes next year. I am closing on a house and hopefully if I can close by end of March I will hold out on doing my taxes so I can receive the 2010 purchase credit on my 2009 taxes.

[Lazarus]

If you brought a house say last November you can file an amended tax return to claim the $8000 credit. I'm not sure if its a check or a credit towards any taxes you owe though. A thread was just started on WERA and one guy said he was getting a check so I dont know.

[wallypiper]

You can receive a check from Uncle Sam.

Here's a websitehttp://www.federalhousingtaxcredit.com/home.html
It has a good FAQ.

And the IRS itself: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

[bigb996]

You can receive a check from Uncle Sam.

Here's a websitehttp://www.federalhousingtaxcredit.com/home.html
It has a good FAQ.

And the IRS itself: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

yea ive read both of the sites and from what i understand its a physical check but i have not spoken with any of my friends of have physically received it yet.

My plan is to sell my bike use that money towards my down payment on top of what i already have saved and then when i the check comes apply some of that money towards a new bike. However if im going to be without a bike for a year till my taxes are done next year then i dont want to do that. Ill try my mortgage broker and ask her if she knows.

[Trey]

I just did all this.. It is a tax credit.. But you have to file it with a copy of your settlement statement..

So long as you close by a certain date this year, you will GET the tax credit THIS YEAR. (I don't remember what the date is.. May 1st maybe?)

I was able to do all mine on taxact.com.. Word of warning, I have heard nasty rumors that its taking 15-17 weeks to process returns with the 1st time home buyer credit. I mailed my return back on Feb 5th.. No word as of yet..

[wallypiper]

yea ive read both of the sites and from what i understand its a physical check but i have not spoken with any of my friends of have physically received it yet.

My plan is to sell my bike use that money towards my down payment on top of what i already have saved and then when i the check comes apply some of that money towards a new bike. However if im going to be without a bike for a year till my taxes are done next year then i dont want to do that. Ill try my mortgage broker and ask her if she knows.

The IRS site is the horse's mouth. They make the rules and enforce them. I would go strictly with what the IRS instructions say and ignore anybody that tells you anything that contradicts the IRS.

And about that scheme to sell your bike and then buy one with the tax credit money - since you'll actually be getting a check from the government as opposed to just getting a credit against tax you would have paid - that's actually called a subsidy in realspeak as opposed to congressspeak - as a tax payer I feel like I am entitled to some access to your new motorcycle. Let me know when you get it so I can come get my share of the riding in. :peace:

Don't get waddy. I don't actually think anybody who is eligible for the credit/subsidy should skip it. I DO think it is government meddling in a market that is already very screwed up by exactly the same general type of government meddling. I wish you the best of luck with your new home. Keep in mind as you plan your finances that most people discover lots of unexpected expenses when they become home owners. Consider just keeping that extra cash in your pocket for a year or two.

[TroyBoy30]

and don't forget to claim the tax break for that new bike purchase next year!

[bigb996]

The IRS site is the horse's mouth. They make the rules and enforce them. I would go strictly with what the IRS instructions say and ignore anybody that tells you anything that contradicts the IRS.

And about that scheme to sell your bike and then buy one with the tax credit money - since you'll actually be getting a check from the government as opposed to just getting a credit against tax you would have paid - that's actually called a subsidy in realspeak as opposed to congressspeak - as a tax payer I feel like I am entitled to some access to your new motorcycle. Let me know when you get it so I can come get my share of the riding in. :peace:

Don't get waddy. I don't actually think anybody who is eligible for the credit/subsidy should skip it. I DO think it is government meddling in a market that is already very screwed up by exactly the same general type of government meddling. I wish you the best of luck with your new home. Keep in mind as you plan your finances that most people discover lots of unexpected expenses when they become home owners. Consider just keeping that extra cash in your pocket for a year or two.

i called HR block and the lady looked it up on IRS website. It does in fact state like Trey said that if you purchase this year by the deadline that you can choose to apply it to your 2009 or 2010 tax return.

i dont plan to buy a brand new bike, i will buy a used one but i will be without one until i can get the return so mid summerish i suppose at this rate. I have been saving for a while and im not buying an expensive house as im single, 24, and dont make THAT much money. The biggest thing is i see this as an investment untilt he market flips again and i can be sitting on some equitty. thanks for all the help and info.