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HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

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Anonymous
Not applicable

HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

 Finally after 4 long months my score was high enough to get approved for the USDA Rural Development loan. In Sep. I started out with exp:637:eqx 581; and tu:523. The day after Christmas I found out my scores were exp:647; eqx:632; and tu:640. I went broke getting those scores up,and the Credit repair service I hired was well worth the money. They were referred to me by the mortgage broker who helped me to aquire my loan. So this is the point,I went broke getting my credit cleaned up to acquire the loan thinking I would get the 1st time homeowners tax credit when I filed my 2009 tax returns. I was married during 2009 so I have to file married filing separate on my tax returnI'm not closing on my house until after my divorce is recorded on the 26th of this month. I was told by the IRS that if I applied for the tax credit for 09 I would only receive half of the credit because of my filing status and to receive the full credit I would have to wait until 2011 when my filing status will be singleWithout that tax credit coming as I had expected,I'm in a bind now financiallyNow I won't have the cash I need to settle right into the house,things like appliances and furniture,etc. Because my credit is only fair I'm afraid to continue to have my credit check or open any new accounts. The scores are good enough to buy a house but not good enough to purchase household goods. Any suggestions on what I can do to tie me over until 2011. How long do you have to be in your home to get an home equity loan or a HELOC? Is it even a option or a good idea? How does it work?

Message 1 of 16
15 REPLIES 15
gpeach
Regular Contributor

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

When did you close?
Message 2 of 16
Anonymous
Not applicable

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

I haven't closed yet. I won't close until after my divorce is final which is the 26th of this month,because I am returning to my maiden name and had all of the paperwork and title put in my maiden name. Once the divorce is recorded at the courthouse then I'll close. everything is done we're just waiting on my name to legally change back. wasn't going to file taxes until after divorce

Message 3 of 16
Anonymous
Not applicable

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

Do not take this to harshly, but why would you have ever thought you would get the tax credit back right away if you have not bought a house yet.  Obviously if you purchase in 2010, you can not file for the credit until you do your 2010 taxes (in early 2011).  Dont wory about furniture, etc.  Buy some used furniture and appliances of craigslist or something and get by for the next year.  If you are that tight on cash, buying that type of stuff should nor be a priority.  You should build up a reserve fund for repairs, etc.  Get some cheap stuff to get you buy for the first year, and then next year worry about upgrading.

 

And no, trying to get a HELOC would probably not be possible right now.  You may be able to get a home depot or lowes card ro something for appliances, but I would pass on that and just get by for the first year.  In our first year of ownership, we had to put at least 3K into the house for necessities (water heater exploded, sprinkler system leak, wiring issue, etc).  Worry about what you need right away, not what you want to get.  Then you can build up to that.  If all goes well, you can get all that stuff next year with your refund. 

Message 4 of 16
Anonymous
Not applicable

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

Well obviuously this wasn't a farfetched idea seeing as though after I close on the house on the 26th I can still claim the tax cedit for 09. But as I stated in my original post my filing status prevents me from gaining the entire tax credit. That is the only reason why I choose to wait until 2011 so that I can obtain the entire credit. What made me think I would get the tax credit with my 09  tax return is after my telephone call with the IRS. As previosly stated in my original post also the only reason I have not closed yet is because I put everything in my maiden name because I new my name would change after my divorce and did not want to go through the hassle nor the expense of having my name change on all my paperwork concerning the house. Does anyone else have any other suggestions that aren't so condecending?
Message 5 of 16
hawkeye33
Regular Contributor

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!


@Anonymous wrote:

Do not take this to harshly, but why would you have ever thought you would get the tax credit back right away if you have not bought a house yet.  Obviously if you purchase in 2010, you can not file for the credit until you do your 2010 taxes (in early 2011).  Dont wory about furniture, etc.  Buy some used furniture and appliances of craigslist or something and get by for the next year.  If you are that tight on cash, buying that type of stuff should nor be a priority.  You should build up a reserve fund for repairs, etc.  Get some cheap stuff to get you buy for the first year, and then next year worry about upgrading.

 

And no, trying to get a HELOC would probably not be possible right now.  You may be able to get a home depot or lowes card ro something for appliances, but I would pass on that and just get by for the first year.  In our first year of ownership, we had to put at least 3K into the house for necessities (water heater exploded, sprinkler system leak, wiring issue, etc).  Worry about what you need right away, not what you want to get.  Then you can build up to that.  If all goes well, you can get all that stuff next year with your refund. 


Splitting hairs, but the OP really could receive the credit right away by amending her 2009 return using new form 5405, but as she stated, the 'Married Filing Separately' status would result in her only receiving half the credit. OP, you might just check around to see if there's any way around this given your situation (home being purchased post-dissolution of marriage), but I'm guessing they're going to tell you to claim it with your 2010 return. Sorry to hear it sounds like 2009 was a year to put behind you. Good luck.

Message 6 of 16
Anonymous
Not applicable

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

I apologize, I did not mean to sound that condescending.  It is just that there really is no suggestions for it.  You have a choice to either file for 1/2 credit on this year or the full credit for this coming year.  As far as the spending and stuff, I was just giving some advice.  You implied that your funds were low due to the credit repair and because you were expecting the refund which you can not get (at least the full amount).  I made suggestions that maybe buying some stuff cheap to get right away, and then waiting until next year to get new stuff would help with this.  I also suggested that if your funds are low, that developing a reserve fund should probably be a priority.  That is all good and sound financial advice.  It sucks if the IRS gave you bad information that put you in this situation, but it is what it is.  There is not a way around the requirements.
Message 7 of 16
Anonymous
Not applicable

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

Apology accepted, and I to apologize for my tone. I was looking forward to the tax credit not only because there are things I will need for my home,but because I have depleted all of my funds and now I'll be a homeowner without any reserves and it's bothering me. You can't just call a landlord anymore to fix things. The plan was to use it to get my nestegg built back up. Also in response to the other reply 2009 royally sucked for me and the goal of buying my home was the only thing that kept me going at times and really still is. So thanks for the well wishes. 
Message 8 of 16
Anonymous
Not applicable

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

Oh let me just also say that the info I got from the IRS was the absolute right answers, because no one else I asked had a clue. Not even the tax preparers. They said that they would have to call the IRS to get the answers,so I did it myself instead of paying them to do so. That was the question concerning how to file for the tax credit being single and having to file married during the 09 tax season.
Message 9 of 16
gpeach
Regular Contributor

Re: HELP! CAN'T CLAIM TAX CREDIT UNTIL 2011!!!

This new home will be a fresh start for you. Stinks that in order to get the credit you have to wait so long. Although hopefully the system for the credit is better and you can efile for it. Even if you could ammend your 2009 it could be a long wait anyway as you have to mail them in.

 

Checking out craigslist for appliances and furniture is super advice. I just found a beautiful oak craftsman table / chairs for 125. I have been looking at new sets for 6 months now and have found nothing I liked very much. It could be a fun adventure for you. Who knows. In a year you could end up being able to save that 8000. 

 

A rule I do for myself is no big purchases for 6 months and doing nothing permanant to the home for 12 months. My husband is in the Army and we have moved alot over the years. That rule has saved us alot of money and kept me from changing things too often.
Message 10 of 16
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