$7,500 Tax Credit is NOW..... FREE MONEY?!?!?!?!?!? Holy Cow!!

[Anonymous]

i havent finalized my return but myself and my wife paid a total of 14500 taxes this year to federal gov. We are getting a 3500 return back. So i take it I would get another 11000 this year and the other 4000 would be left for next year?

I just hope my closing date of feb 11th is somehow part of this bill :/

I am buying a foreclosure as most of you probably know and that 15k would be pumped right back into the house , thus boosting the economy?

Really would help and I bet it would help many others in this thread.

btw w/ the salary talk , we made about 85k this year so we are under the 100k.  

Message Edited by aimetti on 02-07-2009 06:29 AM

[Anonymous]

Ok, so some clarification on refundable vs non-refundable.  Heres the hypothetical situation (which seems very likely in my case):  Let's say I close the week after Obama signs the bill into law, and it stays as a non-refundable credit.  Well, turns out I dont owe any taxes this year (im getting a small refund), does this mean I won;t receive any of the 15k?  Thanks for any explanation.

[john398]

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@Anonymous wrote:
I don't understand these "you'd have to make six figures" comments.  I'm self-employed and make under "6 figures" but owe a little over $8K in taxes for 2008.  So this tax credit would definitely benefit me.  And the money that I would not have to pay the IRS would be spent on some new furniture, landscaping, etc.  Being able to claim a credit that keeps me from sending in a check for money owed is the same as getting cash handed to me, as far as I'm concerned.

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Remember that example said 4 kids, if you have no kids obviosly you pay more taxes

[Anonymous]

Right now, the 15K stimulus won't go into affect until the Obama packaged is passed.  Unfortunately, from what I heard, you wouldn't be eligible for it since start date would be 24 hours after the day its passed.  You would, however, still qualify for the $7500 if you are 1st time homebuyer, I believe.  Things can change daily with the package, though...

[Anonymous]

Good point, MXNUY.  Self employed would be another section of the demographics that could really benefit from this.  

Message Edited by loonzilla on 02-07-2009 06:42 AM

[Anonymous]

I **think** it means that it's not a "dollar-for-dollar" tax break. Meaning, it's like durn nigh every single *other* tax credits out there.

Like this, you're due a $1500 refund (before using the $15K credit) and you decide to use the $15K to plump up your refund. Well, it **will** plump up your refund, but by only about $3K (even if you use the entire $15K credit).

Meaning, a **percentage** of the $15K ends up offsetting your taxes. You do NOT get the entire $15K credit as a refund dollar for dollar.

Did that make sense??

[Lehrer29]

Yes, It makes sense. However, that is peanuts when buying a house. I don't see how this will make people want to go out and buy a house. To me... the 7,500 previous deal was better.  And to think I was actually complimenting the republicans. Geeze! 

[musikklvr]

How is that helping the economy, though? That still doesn't make sense to me.

[Anonymous]

My income after my business deductions/expenses was $51K ($75K before expenses to run the business).  I also was able to claim a credit for my daughter who is in college, as well as her medical insurance deductions and yet my taxes owed were $8200K.  I'm hardly considered wealthy at an income of $51K, yet this $15K tax credit helps me much more than the $7500K "loan."  This perception that the Republicans are only out to help the rich is just plain false.  $51K is hardly "rich".  I'll gladly take this Republican proposed tax credit.

[Anonymous]

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@musikklvr wrote:
How is that helping the economy, though? That still doesn't make sense to me.

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Instead of having to send in $8K to the IRS, I'll take that $8K and buy a new dining room set and have some landscaping done.  I'll be buying products and paying for services that I probably would have put off doing if I didn't get the tax credit.  So instead of that money going to the government, it will be going back into the economy.