Okay...so after waiting a week to see if anyone wanted any specific tax issues tackled, and no comments at all, I guess I'll keep going with the ARRA (American Recovery and Reinvestment Act of 2009) tax changes.
Did anyone buy a house in 2009? Are you looking to buy a home right now? If so, you might get a nice check from Uncle Sam this year or the next year.
First time home buyers (defined as someone who hasn't owned a home for the 3 years previous to a new home purchase/settlement date in 2009 through June 30, 2010) get a 10% refundable tax credit based on the purchase price of the home, up to an $8,000 maximum tax credit.
Long-time home buyers (defined as someone who has owned and lived in the same house 5 out of the last 8 years previous to a new home purchase date in 2009 through June 30, 2010) also can receive a 10% refundable credit based on the purchase price of the home, up to a $6,500 maximum tax credit.
Notice that in both cases you must be under contract to buy the home by April 30, 2010 and close by June 30, 2010 to receive either credit.
So, now you should ask, "Whitni, why do you keep writing the word 'refundable' in bold typeface?"
I was hoping you'd ask that! The housing credits described above are refundable credits, meaning that even if you don't owe any taxes, you'll still get the money! So, for all of you that pay minimal to no taxes (aka students, large families, etc.) a refundable tax credit means extra money in your tax refund! YIPPEE!
If you are eligible for either of the credits above, you have the option of claiming your credit on either your 2009 or 2010 tax return. But there's a small catch: You cannot efile your return when claiming either of these credits. But, hey, for $6,500-$8,000 more of a refund, I'd be willing to snail-mail my return (with the appropriate documentation) and wait an extra 6-8 weeks for my money!
You can find out more about the housing credits here.
Any questions?
Did anyone buy a house in 2009? Are you looking to buy a home right now? If so, you might get a nice check from Uncle Sam this year or the next year.
First time home buyers (defined as someone who hasn't owned a home for the 3 years previous to a new home purchase/settlement date in 2009 through June 30, 2010) get a 10% refundable tax credit based on the purchase price of the home, up to an $8,000 maximum tax credit.
Long-time home buyers (defined as someone who has owned and lived in the same house 5 out of the last 8 years previous to a new home purchase date in 2009 through June 30, 2010) also can receive a 10% refundable credit based on the purchase price of the home, up to a $6,500 maximum tax credit.
Notice that in both cases you must be under contract to buy the home by April 30, 2010 and close by June 30, 2010 to receive either credit.
So, now you should ask, "Whitni, why do you keep writing the word 'refundable' in bold typeface?"
I was hoping you'd ask that! The housing credits described above are refundable credits, meaning that even if you don't owe any taxes, you'll still get the money! So, for all of you that pay minimal to no taxes (aka students, large families, etc.) a refundable tax credit means extra money in your tax refund! YIPPEE!
If you are eligible for either of the credits above, you have the option of claiming your credit on either your 2009 or 2010 tax return. But there's a small catch: You cannot efile your return when claiming either of these credits. But, hey, for $6,500-$8,000 more of a refund, I'd be willing to snail-mail my return (with the appropriate documentation) and wait an extra 6-8 weeks for my money!
You can find out more about the housing credits here.
Any questions?
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