11-29-2012 10:30 AM
I am planning to file on February 2013 and based off my calculations i'd owe 2200 dollars. and i am wanting to pay partial amount like 200 dollars.
I'd also be closing on a home in April 2013. and i'm saving every penny to pay for upfront PMI and partial downpayment until then.
My concern is,
if i make as much small payments as possible until April and arrange installements with IRS, would the underwriter know that i owe IRS. will this show up in my credit report or will there be inquiries.
11-29-2012 10:41 AM
11-29-2012 11:03 AM
Well, i'd have to show my 2012 tax transcripts because i'd have to show that i've not continued on my sole propritorship which was a loss a year earlier.
anyways, so if i close in April 2013, so they'd need the transcripts in March 2013. so pulling transcripts show the amount still owed to IRS?? i didn't know that.
how about this?
i don't sign up for installments, but make payments on my own.
February 2013 - 200.00
March 2013 - 200.00
April 2013 - 1800.00
this way they don't have a installment plan to factor into my DTI.
now if i can't make payment in April 2013, then only i sign up for installment. by then the bank should close the mortgage. adjusting W4 would take more out of my paycheck so, would decrease my savings.
thanks in advance for your input.
11-30-2012 12:50 PM
OR you could just wait on buying a house after April...
do the extra witholdings now, (only 1 month left in the year) and then wait 1 month to buy the house which would bring back the savings that you would have missed out in December
11-30-2012 04:08 PM
12-01-2012 09:41 PM
If I am understanding the situation correctly, I don't see any issue for you as far as getting your house in April.
You can file your taxes when you are ready (January, February, March) but you don't have to send in the payment till Apr 15 and there shouldn't be a record for this. Come Apr 15 when time to pay you can PIF or request a payment plan with IRS if that is what you need. Keep in mind there may be penalties and interest and often are if you owe over 1k.
12-01-2012 09:48 PM
my only concern was whether the underwriter would verify my payment to IRS for the taxes due for 2012, when they pull my transcripts and would there be any indication that taxes are still due, since i would like to pay the whole amount in March, but file my taxes in January, that way they can get a 2012 copy in March or April, that i want them to have. So based on your conclusion it seems like it wont be a problem. thanks
These responses are not provided or commissioned by FICO. Responses have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.