Grab 8000 Follars In Free Money! |
The first time home buyers tax credit is a great opportunity, not just for Stratford CT home buyers but for home buyers across the country.
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What makes the $8000 tax credit so great is that unlike the $7,500 tax credit done last year, the 8k credit does not need to ever be paid back. It’s totally free money!
Here are four more facts you should know about the 2009 home buyers tax credit that first time home buyers here in Stratford must take advantage of:
- The credit is worth either 10% of the homes value or $8,000. You are entitled to the less of the two.
- There is an income limit of $150k adjusted gross income for couples and half that for those single home buyers.
- If you are married but file separately you can each file for half of the tax credit.
- The 8000 dollar tax credit applies to purchases from January 1 to December 31.
If you have any other questions about the first time home buyers credit use the comment box below. I’ll answer all of your questions here on this page.
I’m available to help anyone looking for a house in Stratford and the surrounding areas. There’s also a second half to this blog post coming in the next few days where I will outline five more important facts about the $8000 tax credit.
Stay tuned and happy home hunting,
Scott
P.S. – I’m getting a lot of questions from you guys about the tax credit by email. I’ll be answering many of them in upcoming posts so don’t forget to subscribe to the RSS feed.
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Time is getting closer to buying. I have a couple of questions about the 8000 dollar tax credit. We sold our house Aug 24, 2006. But we moved May 26, 2006, making it no longer our primary residence on that date. For the $8000.00 tax credit, do I qualify? I think the tax law reads eligible party being someone who hasn’t owned a primary residence for 3 years. I know its an unusual question on the wording of the new tax law but I want to take advantage of it. Can you clarify this for me so we can start preparing our selves to start the house search. Timing is a big issue for us. In order for us to move to Florida in July we have to have a moving address by end of May or June. If went rent, we will be stuck in a lease for at least six months to a year. Of course, I don’t want to move twice and we lose out on the 8000 dollar tax credit. So clarifying my tax question will be the decision maker for us.
Hi Sara,
You are 100% correct in what you heard about being a first time homebuyer. In order to qualify for the 8000 dollar tax credit you must not have owned a primary residence in the last three years.
I do advise that you consult with a tax professional before making any decision based on tax law.
When talking about not owning a primary residence in the last 3 years, is a condo considered a primary residence? Thanks.
Hi Nick,
Yes, a condo can be considered a primary residence.
Here is my question about the $8000 credit:
My long-time girlfriend and I are seriously considering buying a condo together. Both of our names will be on the loan. Since we are unmarried, both first-time home buyers and file our taxes separately would that entitle us to $8000 a piece? Or would we each get half?
Thanks!
Hi Brady,
Excellent question! I actually don’t know the answer. I’m going to forward your question to a tax pro and get an answer for us.
Scott
UPDATE:
I had my boss ask his accountant and he stated that the credit is based on a per household/address basis, so we would NOT be entitled to $8000 a piece.
I am still interested in what you hear, Scott.
Thanks!
I am looking to buy a house , first time buyer. I claim nothing during the year and have 3 dependents, i look to get back 3000 to 5000. will I get an additional 8000. if I buy now as a qualified first time buyer.
Hi Craig,
The 8000 dollar tax credit is completely independent of your regular tax refund. If you do not buy a house this year and qualify for a refund of 3000 that’s good. Now if you buy a house this year and qualify for the tax credit you will get an additional 8000 dollars. And that’s great!
Can you amend your 2008 taxes that you already filed and get the $8,000 back this year? If so, what do you need to bring with you to get the $8,000 back (paperwork, etc.)
Hi Nichol,
You can get the 8000 dollar tax credit on your 2008 tax returns. I believe you can get the 8000 dollars by amending your taxes even if you have already filed. The federal government allowed for that in just the last couple weeks. Check with your tax professional to find out exactly what you will need in order to go about getting that accomplished.
Scott
Are you telling me that im going to get an $8000 tax return in 2010?
What about if my down payment was a gift?
I own a mobile home but I rent the ground it sits on, does this disqualify me from getting the 8,000 dollar credit. I would sell my mobile home and purchase a house.
I don’t know what your tax return amount will be Mike. I do know that you may qualify for an 8000 dollar credit on your taxes. That 8000 tax credit will increase your tax refund amount or offset the amount you would otherwise have to pay.
William,
Mobile homes are outside my realm of experience. The mobile home, if it is your primary residence, may disqualify you for the 8000 dollar tax credit. Check with whomever does your taxes for an answer to that question.
Scott
Hello I would like to know if the $8000 credit applies to not only real estate listed with an agency but bank owned REO forclosures etc.
THANK YOU
phillip
Hi Phillip,
Absolutely not! You do not have to buy a home that is listed with an agency to get the 8000 dollar tax credit.
Hi, My husband bought our current home 4 years ago before we were married and his name is the only one on the house. We are looking to buy a bigger house this year. I have never bought a house …the new house will be in both our names would I qualify for the 8000 dollar tax credit?
Hello. I was reading an article today in regards to the 8000. credit for first time home buyers. My question is, I own a home that has been a rental from day one. I have owned this home for 9 years now. My wife purchased a home a year ago (before we were married) that we lived in for a short time, but now rent. We are getting ready to purchase a primary residence to live in, and I was reading that if you owned a home, but it was a rental, or had been converted to a rental within three years of ownership you could still qualify.
Can you confirm or deny this?
Regards,
Charles
Hi Scott, I have a question about “Definition” of first time home buyers tax credit … I was married and my ex-husband had a property. Loan and title of property was in his name. now…the question is we’ve filed taxes together on 2006,2007 but not 2008. I am trying to get home for myself now. would that make a difference? or do I still qualify?
If your tax liability for the year is only $3,000 can you take the $8,000 credit and get a $5,000 refund?
These special cases about the 8000 dollar tax credit can very very confusing. Tough questions like this are best left to a tax professional.
HI Charles,
That a tough case you have there. That is definitely a question for a tax professional and not a real estate agent like myself.
My wife have rented for the last 4 years and a friend wants us to assume his mortgage, will this qualify for the $8000 or do we have to buy it flat out to get the money? I asked wells fargo who holds the Mortgage and they were unable to give me an answer.
Hi Sue,
I believe you would still qualify but I am not positive. Check with a tax professional for that specific scenario.
Hi Doug,
Yes, since it is a tax credit you would get a refund in that scenario.
I own my home and I was wondering if I qualify for the 8000 dollar tax credit or do they have any other interest free loans for people
Hello Nevel,
Great question! Unfortunately, I am just as useless as Wells Fargo. Contact a tax professional for the answer to that question. The IRS website may also be able to answer that for you.
Hello India,
You will need to purchase a home before December 1st to qualify for the credit. Check out http://www.makinghomeaffordable.gov to see if you qualify for the financing deals that are out there with assistance from the federal government. Let me know if you find an interest free loan. I would love one too!
Hi,
How do you go about amending you taxes to get the $8,000 credit this year and is there a deadline for closing in order to get it.
Thank you!
I recently brought a house this year for $92,000. I normally get around $4000 refund on my income taxes. Will I receive my $4000 and an additional $8000 because my house price is over $80,000? I also brought a new car this year, would you happen to know how the stimulus affects that and if that would increase my tax refund also?
about the 8k tax credit, i have already filed my taxes this year. I am about to close on my first home. so if i go in and amend my taxes will i get a check back for 8k
Hi Amanda,
There is a form that you will need to fill out. You can get the form from the IRS website. I believe that in order to get the 8000 dollar tax credit you will have to close on your home by December 1st. We may see an extension on that date but the way that the housing market and overall economy is slowly picking up I doubt it.
My husband and I bought a house in October 2007 and started paying our mortgage from Dec 2007. We got our $7500 tax credit i.e the repayable in our tax returns.
We are now trying to get our home loan streamlined this April 2009. Will this make us qualify for a the $8000 credit ? I mean can we return or exchange our previous $7500 credit into a new 2009 credit?
Gordon,
I can’t tell you how long it will take to get the money back. The IRS has a table on their website that gives you an estimate of how long it will take to get a refund after filing. Since you owe money and are doing an amendment I could only guess. I have found that the IRS has been fairly responsive with the 8000 dollar credit.
Hi Josh,
After amending your taxes you will get the 8000 dollars back. Check the IRS website to see if you will be sent a check. I am nearly positive that you do. They are very responsive by phone as well. It’s probably a common tax credit question for first time home buyers.
I want to buy a house and get the credit but can i get the money to make a down payment first?
Hi Jordan,
You’ll have to buy a house before you will be eligible for the 8000 dollar first time home buyers tax credit.
I owe federal taxes. If I buy a house they will take the 8000 right?
Do I have to use an FHA first-time homebuyer loan? Or can I use any old loan I can get online or otherwise?
It’s a pretty safe assumption that they will deduct whatever you owe from the 8000 dollar credit.
Hi Kat,
You do not have to use a fha first time buyers loan to get the tax credit.
I originally posted this question April 20th, I would really appreciate it if you could enlighten me if you know the answer. Thanks.
I recently brought a house this year for $92,000. I normally get around $4000 refund on my income taxes. Will I receive my $4000 and an additional $8000 because my house price is over $80,000? I also brought a new car this year, would you happen to know how the stimulus affects that and if that would increase my tax refund also?
some people are saying you get the 8000 dollar check to buy the house they say you go to person that dose taxes they fill out the paper work and you get an 8000 dollar check in the mail to buy a home
My husband and I purchased a home in August of 2008. When we filed for our taxes in February of 2009 we got the $7,500 loan. Are we still going to be required to pay it back? We have missed the $8,000 by only a few months and it is my hope that since the government is not requiring people to pay back the $8,000, are we going to have to pay back the $7,500? Thank you!
Hi Jo,
You will still have to pay back the $7,500. Sorry to be the bearer of bad news.
Arisnedy,
The 8000 dollar first time home buyers tax credit cannot be claimed before the closing date.
Hi, I found a home I want to buy and I am about to submit an offer. I filed my 2008 income tax and received my refund in March 09. Are you saying that once I receive my settlement date, I can go to a tax professional, fill out the appropriate forms and receive the $8000 refund before I go to settlement? Thanks!
I want to co-sign a loan from my daughter’s first home.
I will be a non-occupying co-borrower.
I own homes.
Can my daughter still get the tax cred?
Thanks!
Ericka
Nope. You’ll have to close on a house first to get the 8000 dollar tax credit. You can however get the credit before you file your taxes though. I think that’s great news!
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