tax credit for buying house?
I have bought a house one month ago. How does the $8000 tax credit work. I have already filed 2008 tax returns. Do I get $8000 cash
- Anonymous10 years agoFavorite Answer
In order to qualify for the credit, this needs to be your first home purchase and the closing date needs to be between January 1st 2009 and December 1st 2009.
You need to be a first time home buyer. The definition of a first time home buyer is that you have not owned a home three years prior to the purchase of this home. If you are married, both you and your wife are considered. So, for example you had just gotten married this year, and your wife owned a home prior to your marriage, you would not qualify for the credit.
The credit is equivalent to 10% of the purchase price of the house, not to exceed $8,000. There is an income limit for a single person, $75,000 and phased out at $95,000. For a married couple the limit is $150,000 and phased out at $170,000.
You must live in the home for three years or you face recapture of the credit.
You do not get $8,000 in cash. You will either have any tax liability offset, or receive a refund check from the government.
You claim the tax credit on your federal income tax return for 2009. Specifically, home buyers should complete IRS Form 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf to determine your tax credit amount, and then claim this amount on Line 69 of your 1040 income tax return. No other applications or forms are required, and no approvable is necessary. However, you will want to be sure that you qualify for the credit under the income limits and part-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.
The credit is also refundable. This means the home buyer credit can be claimed even if you have little or no federal income tax liability. For example, if you had a federal tax liability of $6,000 and had $4,000 withheld, then without the tax credit, you would owe the government $2,000. Now if you qualify for the credit, you would receive a check for $6,000. $8,000 - $2,000. Or, if you are absolutely sure you qualify for the credit, you can reduce your income tax withholding up to the amount of the credit so you can take more money home in each paycheck.
There are some other fine nuances in the law. If you feel your situation is complicated, or are not sure how to apply for the credit, I suggest you contact a tax professional.
- Anonymous10 years ago
I bought a house last sept. when the credit was $7500. And when I filed for taxes this year, Yes I received $7500 on top of what I got back for taxes normally. Now with mine I know that I have to pay it back over 15 years. So from now on like next year, lets say I get back $2000. they will take $500 each year outta that to repay it. So then I'd get $1500 instead. But if ever I owe money in, they wouldn't also make me pay that extra $500. They only take it if I was to get money. So this year I had a wonderful amount deposited in my checking account after tax time. And there is no amount added to that for finance charges or anything.
Now I've heard a few differences on this new $8000 credit. I've heard that you don't have to pay it back! I'm not sure if it's true or not. And I've heard that they want to make it that way but they still haven't, I'm unsure.
But... to find out all you have to do is call your realtor, or any realtor at this point, or call a bank and ask them. All of these people would be great resources for you!
Because you bought your house last month, this wouldn't come into play until next year when you do taxes.
Also for mine i had to be a new first time home buyer, or have not bought or lived in a house for the past 3 years would count too. If you'd only been renting for 3 years and the last time you bought a house was 6 years ago that would count under the credit I got. But on this I'm not sure if that changed, so that would be a good question for your realtor.
- UpintheAirLv 710 years ago
Hope you already filed your 2008 tax returns: they were due 04/15/09. Maybe you meant 2009 returns?
If you qualify for the tax credit you can file an amended return using form 1040X, also including form 5405 and a copy of your HUD1 from closing.
There are a few criteria you must fulfill to qualify for this credit.
It is a true refundable credit and is in addition to any other refund you may have been owed.
The $8000 first time home buyers tax credit is for buyers who have not owned a home in the last three years.
You must have been in a signed purchase agreement by 4/30/10 and closed and occupied by 06/30/10.
There are income limits and the home may not have been purchased from a relative.
You must occupy the home for 3 years as your primary residence.
When in doubt, go to the source.
Here is the link to the subject on the IRS website:Source(s): Realtor
- Genuine GuidanceLv 710 years ago
Did you put a contract in or close on a house on or before April 30th? If so, you have to amend your 2009 tax return.
If you qualify, you would get a check from the government for the 8k.
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- haagLv 43 years ago
What you're offering to do is fraud And, no longer nicely truthfully worth the measly $1700 you will get from the government, in case you even have been waiting to get it. you does no longer get 8k on a 17k homestead.