Home Buying in Suncook>Question Details

Beth, Home Buyer in Pembroke, NH

When do you get the $8k tax refund for frist time buyers? Do you have to wait till tax time?

Asked by Beth, Pembroke, NH Mon Mar 9, 2009

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Chuck Braxton’s answer
Beth:

If you read the information carefully, you will realize that you can actually put the $8,000 credit on your 2008 tax return. If you are in the process of buying a home and have not filed your taxes, you can submit a form called an automatic extension of time to file Form 4868 with any tax due and delay when your actual return is due until October 2009. Nice thing is that you will likely not owe any tax since you are getting the $8,000 credit so there is no money to pay with the extension. Close on your new home, then file your 2008 return. You will already be ahead. You may also want to adjust your withholding. This is not intended as financial, legal or tax advice, just a hint as to how to be savvy. Chuck
Web Reference: http://www.ChuckBraxton.com
0 votes Thank Flag Link Tue Mar 10, 2009
Great answer from Paul, which I'd like to add just a couple of things to. The purchase period is for a property that has a closing date on or after January 1, 2009 and November 30, 2009. (NOTE: properties closing on December 1 are not eligible for this tax credit!)

So if you've already bought and closed on a property, and you meet the other criteria (adjusted gross income with in the 75k/150k limit and 1st time buyer/non-property owner for the last 3 years) you can claim this credit on your 2008 taxes. If you are already filed your 2008 federal taxes, you could file an amended return to claim to the credit in 2008 or just wait until 2009.

If you HAVEN'T yet bought a property, here is an interesting twist. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Here is a great website that you may find helpful: http://www.federalhousingtaxcredit.com/2009/glance.php

I wish you all the best, and If I can help answer any questions on the buying process in our area, you are welcome to contact me at your convenience.
Web Reference: http://www.SNHhome.com
0 votes Thank Flag Link Mon Mar 9, 2009
Great answer from Paul, which I'd like to add just a couple of things to. The purchase period is for a property that has a closing date on or after January 1, 2009 and November 30, 2009. (NOTE: properties closing on December 1 are not eligible for this tax credit!)

So if you've already bought and closed on a property, and you meet the other criteria (adjusted gross income with in the 75k/150k limit and 1st time buyer/non-property owner for the last 3 years) you can claim this credit on your 2008 taxes. If you are already filed your 2008 federal taxes, you could file an amended return to claim to the credit in 2008 or just wait until 2009.

If you HAVEN'T yet bought a property, here is an interesting twist. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Here is a great website that you may find helpful: http://www.federalhousingtaxcredit.com/2009/glance.php

I wish you all the best, and If I can help answer any questions on the buying process in our area, you are welcome to contact me at your convenience.
Web Reference: http://www.SNHhome.com
0 votes Thank Flag Link Mon Mar 9, 2009
Yes. You get the full tax credit on your 2009 tax return. For single filers you need to have a modified gross adjusted income (after deductions) of up to $75,000 to qualify. For married taxpayers the maximum gross adjusted income is $150,000. In both cases a partial tax credit is available if your adjusted gross income exceeds those limits.The tax credit is equal to 10 per cent of the purchase price of a home up to a maximum of $8,000. It's available to new home buyers, which means anyone who hasn't owned a home in the past three years. It covers the purchase of single family homes, condominiums, and mobile homes. The credit is available for any purchase made now through December 1, 2009.
0 votes Thank Flag Link Mon Mar 9, 2009
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