{[ First Time Homebuyer Stimulus Package Vol. +*@$ you, PAY ME! ]}

[i drink your milkshake]

Ok, so I've been stacking and bearing the burden of living at home with the plan of buying a duplex this summer. I'm shooting the breeze and I got puton to the new homebuyer tax plan that shells out 8k for first time homebuyers.

http://www.biblemoneymatters.com/20...f-8000-in-2009-economic-stimulus-package.htmlhttp://www.biblemoneymatters.com/20...f-8000-in-2009-economic-stimulus-package.html

The 2009 Economic Stimulus Package passed and was signed into law earlier this week. On Wednesday I posted about what parts of the stimulus bill will affect individuals, and what benefits you can receive from the stimulus package.

Today I thought I'd take a closer look at one of those benefits that first time homebuyers can expect to receive if they buy a house this year, the $8,000 tax credit. This really just makes it that much more of a buyer's market!
[h2]What The Stimulus Bill Says[/h2]
In Sec. 1006 of the 407 page Stimulus bill you'll find the information about the home buyer's tax credit. It reads:

Extension of and increase in first-time homebuyer credit; waiver of requirement to pay


What does this mean? It means that first-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes. To qualify for the credit, the home must be purchased between Jan. 1, 2009 and Nov. 30, 2009.

You cannot have owned a house for the past three years to qualify as "first time" buyer. You also must live in the purchased house for at least three years, or you will be obligated to pay back the credit.

The tax credit does come with some income restrictions. To get the credit, homebuyers have to earn less than $75,000 for singles or $150,000 for couples. If you make more than that you may qualify for a partial credit.

Getting the credit should be pretty easy, just claim it on your return. No other forms or papers should need to be filed, and if you have already completed your return, you can file an amended return to claim the credit.


[h2]How To Get Your First Time Home buyer Tax Credit[/h2]
A review of the provisions of the first time homebuyer tax credit:

• You cannot have owned a home for the past 3 years to qualify as a "first time" buyer.
• It applies to homes purchased January 1, 2009 through November 30, 2009.
• You must keep the home for three years.
• The credit is refundable.
• The credit is for $8,000 or 10% of the home's value, whichever is less.
• It phases out for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples.

Remember, when buying a home it's best to buy something you can afford (no more than 25% of your income), to put down a large down payment (at least 20%), and to get into a fixed rate only 15 year mortgage if you can. I talk more about this on my post about Financial Peace University's lesson on real estate and mortgages.

got this info just to kinda brush up on what it's saying. My deal is, and you know how negroes are, people were saying "man, Obamagon' give you 8 gs!" But when I look it's actually a tax credit. I would LOVE LOVE LOVE, to use the money I've been stacking to pay offcredit card bills. But, looks like with the credit...I'd actually HAVE to use the money I've been saving towards the house. The thing is, payingcredit cards, student loan, car, insurance, PLUS my newly added house expenses would be a bit much

I'm pretty sure I'd get it because I meet the necessary criteria.

How soon would I be able to get the credit? I mean, like if I get the house in october...I'd just have to wait until the next tax season to get thecredit??? This offer is TOO good to pass up and looks like it will be up until November of this year.

 

[dirtylicious]

you really thought they were going to just give out 8K?...

 

[cjmoney]

Originally Posted by Dirtylicious

you really thought they were going to just give out 8K?...

They aren't? I thought if you qualify you simply get an 8k tax credit on your next year return?

 

[i drink your milkshake]

Originally Posted by Dirtylicious

you really thought they were going to just give out 8K?...

I'm not going to lie and say I didn't entertain the thought--I thought maybe it would be through a bank loan or something...I don't know. Whiiiiiich is why I made the post.

 

[dr spaceman]

What do they take it back if you move out before 3 yrs?

 

[i drink your milkshake]

Originally Posted by CjMoney

Originally Posted by Dirtylicious

you really thought they were going to just give out 8K?...

They aren't? I thought if you qualify you simply get an 8k tax credit on your next year return?

see that's the thing...I'd have to get it on NEXT year's return, right? It would be too late to get an amended return, right?

 

[i drink your milkshake]

Originally Posted by Dr Spaceman

What do they take it back if you move out before 3 yrs?

not per se--you gotta pay it back. Rightfully so....IMO.

 

[thejoker0077]

 

[dirtylicious]

Originally Posted by I Drink Your Milkshake

Originally Posted by CjMoney

Originally Posted by Dirtylicious

you really thought they were going to just give out 8K?...

They aren't? I thought if you qualify you simply get an 8k tax credit on your next year return?

see that's the thing...I'd have to get it on NEXT year's return, right? It would be too late to get an amended return, right?

it's a tax credit for the year your purchase your house.
even if you could file an amended return... you'll buy the house in 09...not 08 which is the fiscal year you just filed for

 

[i drink your milkshake]

Originally Posted by Dirtylicious

Originally Posted by I Drink Your Milkshake

Originally Posted by CjMoney

Originally Posted by Dirtylicious

you really thought they were going to just give out 8K?...

They aren't? I thought if you qualify you simply get an 8k tax credit on your next year return?

see that's the thing...I'd have to get it on NEXT year's return, right? It would be too late to get an amended return, right?

it's a tax credit for the year your purchase your house.
even if you could file an amended return... you'll buy the house in 09...not 08 which is the fiscal year you just filed for

RIGHT!

ok...yea. Dam--I'mma have to grind it out this summer to knock out my credit cards.

 

[hollowpoints]

WASHINGTON - The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year beforeDec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

"For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the taxcredit," said IRS Commissioner Doug Shulman. "This important change gives qualifying homebuyers cash they do not have to pay back."

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recoveryand Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, incomelimitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repaythe credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or$4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home duringthe three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For thesetaxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 formarried individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning withthe 2010 tax year.

Click here

I was able to file an amendment for my '08 return, but I had to wait until after April 15 to do so.

 

[i drink your milkshake]

Originally Posted by hollowpoints

WASHINGTON - The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

"For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. "This important change gives qualifying homebuyers cash they do not have to pay back."

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

Click here

I was able to file an amendment for my '08 return, but I had to wait until after April 15 to do so.

 

[nevevans]

I bought in 09, filed for 08 and got the 8k deposited in the bank. Its too late now to file.

 

[wstcoastgotti]

you really thought they were going to just give out 8K?...
Ya actually, if you qualify and are a first-time home buyer, why not? That is what they said.

I have been thinking real hard about whether to take advantage of this or not, and its pretty obvious I should, but my job isnt stable so i am concerned aboutthe 3 years owning it. I guess I would just rent it out if I had to leave, and hire property managers to do all the little stuff. This definitely is aridiculous deal the gov't is giving us young folks tryin to come up

 

[dirtylicious]

Originally Posted by hollowpoints

WASHINGTON - The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

"For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. "This important change gives qualifying homebuyers cash they do not have to pay back."

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

Click here

I was able to file an amendment for my '08 return, but I had to wait until after April 15 to do so.

and I stand corrected.

Originally Posted by WstCoastGotti

you really thought they were going to just give out 8K?...

Ya actually, if you qualify and are a first-time home buyer, why not? That is what they said.

I have been thinking real hard about whether to take advantage of this or not, and its pretty obvious I should, but my job isnt stable so i am concerned about the 3 years owning it. I guess I would just rent it out if I had to leave, and hire property managers to do all the little stuff. This definitely is a ridiculous deal the gov't is giving us young folks tryin to come up

They're not giving you 8K for your downpayment though... they're giving it AFTER you buy the house.

 

[maza4ever14]

man i just copped a house, i need to fill out that form 5405

 

[cjspida619]

me and my girl are about to go thro this we are lookin at house and condos right now i hope this 8g credit helps us out some

 

[sundoobie]

Edit..


Actually you don't have to pay it back!

How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.

http://www.federalhousingtaxcredit.com/2009/faq.php

 

[youngtriz]

Originally Posted by SunDOOBIE

When I first read this last year... I

because it's not even a "real" tax credit.

This so called CREDIT has to be PAID BACK!

It's an interest free LOAN that is paid back to the IRS the following 15 years!

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date.

at first when they were giving out $7,500 you had to pay it back over 15 years... but they bumped it up to $8,000 that does not have to be paid back, unlessyou move out before 3 year

 

[jbug88]

Triz is spot on.
the $7500 had to be paid back.
the $8000 is free and clear.
I'm in escrow right now. My taxes next year are going to be insane. 2 kids, interest on the house and this $8k? remodel here I come...
Hell I got almost $9k back this year..

-J-

 

[youngtriz]

^^ damn i also have 2 kids... we are trying to get a house this year.... short sales FTL....

 

[jibbycanoe]

I plan on taking advantage of this too. great time to be a first time home buyer. and in PDX it hasn't even been close to affordable for the last few years

 

[johnniem2nd]

Take advantage if you can. My wife and I did. We waited and filed on our 08 return and received the money in our account theirs also one for Californiahomebuyers for 09 return only on new homes purchased in '09

[size=+1]Cali Tax Credit[/size]

 

[theswoosh]

This could help out a lot! I just gotta get my down payment up!

 

[jbug88]

Originally Posted by YoungTriz

^^ damn i also have 2 kids... we are trying to get a house this year.... short sales FTL....

I'm in the same boat dude. short sales suck. but the wife is deadset on this house. We should have actually closed escrow last week. We funded onMonday and was supposed to record on Tuesday and when they ran the final title report, it came up as the seller declared bankruptcy. so we are dealing withthat as well. if the damn short sale approval hadn't taken so long, we probably would have been good..

-J-