Home Buying in Buffalo>Question Details

Patty, Home Buyer in Buffalo, NY

I am hearing that the 8000 tax credit is actually cash that gets deposited in your account. Is this true?

Asked by Patty, Buffalo, NY Tue Feb 17, 2009

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Evidently we have a lot of people that need to educate themselves on the first time home buyers tax credit of $8000. I really don't understand how the "professionals' can be so far off base. It seems to me you would make 100% sure you know the facts before offering answers and giving incorrect information. FACT: You absolutely are able to receive a check for up to $8000 deposited into your account. The $8000 is NOT just deducted from your year end wages.

From IRS website word for word:

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
0 votes Thank Flag Link Sun Sep 27, 2009
I live in Alabama and it must vary from state to state because I know 2 people who work with me and they both purchased homes last month and Yes they got the money deposited into their accounts. They both said they had to pay taxes on the 8000.00 but ended up with 6000.00 or close to it. Good Luck,.
0 votes Thank Flag Link Mon Jun 22, 2009
We all wish they were writing out checks! No they are just giving you a $8,000 break from what you owe in your 2009 taxes as everyone else has said before me. Now you can subtract the $8,000 from the Trillion dollars we all have to pay back.
0 votes Thank Flag Link Sun Feb 22, 2009
Even though this tax credit is for first-time homebuyers, for the purpose of this credit the government is defining first-time buyer as someone who has not owned their principal residence for the 3-year period prior to purchasing. So even if you've owned your home in the past and have either been renting or living in someone else's home recently you may qualify as a first-time buyer for this tax credit.
0 votes Thank Flag Link Wed Feb 18, 2009
That's not true. It's a refundable tax credit. Whatever is left over after your taxes are paid you receive as a refund
0 votes Thank Flag Link Tue Feb 17, 2009
Here is a brief summary of the credit provision, in the stimulus package.

It is not an immeidate check but yes on homes purchased this year this depending on value of home and inocme, homes value and timimg you can get up to an $8000 tax credit when you file your 2009 tax return, the credit would be an income tax refund or less money you need to pay in taxes for this year
below is the summary of the provision.

Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase.
Web Reference: http://www.c21jerry.com
0 votes Thank Flag Link Tue Feb 17, 2009
as per the NYSAR site... "The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser."
0 votes Thank Flag Link Tue Feb 17, 2009
No cash into your account. You get a tax credit, you have to be a first time homeowner, there are income limits and if you do not sell within 3 years, you do not have to repay the credit.
0 votes Thank Flag Link Tue Feb 17, 2009
No,it is a tax credit,period.
0 votes Thank Flag Link Tue Feb 17, 2009
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