If I qualify for $8K tax credit but do not pay taxes, how does that work?

Asked by Betty Scuzzese, Hamilton, NJ Thu Mar 19, 2009

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Mike Robinson’s answer
Mike Robinson, , Bentonville, AR
Thu Mar 19, 2009
Betty, the credit is not automatically $8,000, it is UP TO $8,000, depending on your income level. The best advice is to tell you to get with a trusted local Realtor who can explain the credit to you in detail, and can represent you as a buyer's agent. You'll want someone looking after your interests! Good luck!
1 vote
Larry Sarlo, Agent, North Wildwood, NJ
Thu Mar 19, 2009
Remember also you can take the credit on your '08 return also.
1 vote
terryriw53, Agent, Sewell, NJ
Thu Mar 19, 2009
Betty,

Could you clarify? Is it that you don't actually pay income taxes or don't owe any? Either way, to get the tax credit you have to file and include the Fed Form 5405. The $8000 is netted against what you owe or are owed back. If you owe $0, then you get $8000. If you owe $1000 then you get $7000. If you get a refund, then the $8000 is added to the amount you are owed.
Either way, it is to your advantage.
1 vote
Larry Sarlo, Agent, North Wildwood, NJ
Thu Mar 19, 2009
The credit is a refund. If you are supposed to get 1000 refund from gov't and you qual for the 8000 credit you would get 9000 back as refund. the credit is a refund...
1 vote
Zack, , Westchester County, NY
Sat Apr 25, 2009
Yes, this is a refundable tax credit, which is another term for welfare. So you get it whether you pay taxes or not.
0 votes
Tony Lee, Agent, Hamilton, NJ
Fri Apr 24, 2009
0 votes
Betty Scuzze…, , Hamilton, NJ
Thu Mar 19, 2009
Thanks Terry and Larry,
Yes I will most likely not owe any taxes, so wanted to confirm that the $8K would be accomplished in a refund.
Again, thanks
0 votes
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