Never assume....

I know, right!

I dont know what I read, but it was on the IRS site back when I was looking at homes...June?

Here's a clue for the puzzle - the deductions don't offset your tax liability dollar for dollar, they reduce your taxable income. The fact that deductions exceed your payments is largely irrelevant. But, happy filing!

The $7,500 credit for first-time homebuyers who bought in 2008 still has a 15 year repayment plan. It must be paid back in 15 installments of $500 each, starting with the 2010 tax year (so, next year).

The $8,000 first-time homebuyer credit does not have to be paid back, and it is for people who bought in 2009. It originally expired in November, but was extended through April 2010. Yet another credit was added in November for existing homeowners who buy a new house. That credit is $6,500, and doesn't have to be repaid. It expires in April 2010 too.

Regardless of the credit claimed, the tax return cannot be filed electronically! It must be filed by paper, so expect lots of delays. I am a Volunteer Income Tax Assistant, and we are going to help folks prepare their returns, but we won't be able to e-file it. Lots of documentation has to be provided, too. They are trying to cut down on the fraud cases that happened last year, when they saw things like 4 year olds claiming the credit.

I knwo that...studied Federal Taxes in an accounting class in college. I was jsut sayin'....

All I need to do now is make copies of some of the itmes I pulled out last ngiht. Already printed out clean copies of the 4 forms I have to turn in...expecting Over 9200 back Sure beats the 600 from last year!

On behalf of all of taxpayers here on BOL, you're welcome.

Oh, and one more thought... just in case you missed it....don't forget about the $400 "Making Work Pay" credit on Schedule M!

!

Thank you Mister J

but you can't claim the loss when you sell a house for half of what you paid 6 months ago!!!!

and that is all I have to say on the matter!

OMG, FREE MONEY!!!!!! Shoot...have to redo my forms now

Best tip yet! Thanks!!!

The $6,500 tax credit for existing homeowners purchasing another home went into effect on November 7th (a Saturday?) I closed on my house on November 6th. Don't know if my purchase would have qualified but since I was a day early I didn't even look. Will most likely have to have my taxes done by a pro this year anyway so I'll ask, but it looks like one day cost me $6,500! Oh well, it is what it is.

Oh stink, Thomas! I think you're right. President Obama signed the law into effect 11/6/09, and the existing homebuyer credit is only for homes bought AFTER 11/6/09. Poop.

Well, if it is any small consolation, the amount you are out is "only" $3,250, if you're filing "married filing separately" for the 2009 tax year. Bummer, nonetheless.

Ah well, think of it this way:

Buying a new home: Tens of thousands of dollars.
Buying your new home one day too late: $3,250
Being free of the crackpot: Priceless!!

Agreed!!!!!!!

Absolutely love this!!! Could not be more true!

Dip, my bill is in the mail, glad I could help.

I thought Sch. M was going to result in most people having to repay the stimulus money.....

how come Dip thinks she is getting more?

I am about ready to turn her in for the bounty.......

Schedule M is where you actually claim the $400 credit to account for the smaller withholding on your paychecks. The few bucks we saw in each paycheck was merely an advance of this $400 credit. You don't actually get any tax benefit for it until you claim it on your return. If you are one of those folks getting a nasty surprise of increased taxes because of the stimulus, failing to count the credit on your Sch M will only make it worse! That's because the damage is already done... it's been going on via your withholding.

The repayment issue happens in large part because of problems with the withholding tables. For example, a working couple (who will receive an $800 credit) ends up getting a withholding boost that actually gave them $1,200, not $800.

Similarly, a single filer with multiple jobs is getting a $400 reduction in withholding from EACH job, but can only claim a total credit of $400. The net effect is underwithholding, which will either result in a smaller refund or taxes due.

Obviously, this isn't Dip's situation!

what is your hourly charge for doing my taxes Miss RL?

you have this stuff down!

Aw shucks, just for calling me Miss and not Ma'am, it's on the house!

Hope I don't have this issue, since my credit is factored into my current year return and is part of my regular refund. Plus I ususally files my taxes as soon as I get my W-2 so I usually get a prompt refund....except from California last year [/quote]

We're in PA and had a customer that pretty much had an I.O.U. from California for [I believe] their refund from 2008. It said it was not good until after October and this was August.