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

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Anonymous
Not applicable

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

Fifteen grand sounds good.

 

Any idea how the income level is calculated?  I'm a single guy and contribute to my 401K.  I boosted my contributions to avoid the $78,850 trap. 

 

I'm looking at my W-2.

Box 1 $76,900

Box 3 $82,500

 

Message 51 of 329
Anonymous
Not applicable

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

Hey Fatdumbhappy, Smiley Happy

 

The numbers are based on Modified Adjusted Gross Income (MAGI).

You have to use your tax form to figure it out, not your W-2.

 

Please refer to Questions  6 & 7 on this link for help:

 

http://www.federalhousingtaxcredit.com/faq.php#4

 

If your MAGI is 75k or below, you get the full credit.

If it's above 75k but below 95k, you get a partial credit.

Incomes above 95k for single filers do not qualify at all.

 

You can look at Question 8 for an example of a partial credit.

 

CanDo

 

"The right attitude is everything"

 

 

Message 52 of 329
Anonymous
Not applicable

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


@llecs wrote:

@Anonymous wrote:

Holy crap. What's all of this talk about $15k?

Honestly, that seems like a heck of a lot of money to me.  I guess they are REALLY trying to get home buyers out there. Wow.


 

I'm holding out for $30k myself. j/k

Haha. You crack me up.

Message 53 of 329
Elevatn
New Visitor

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

Here's a question. The current tax credit is 10% of the purchase price up to $7500. If they double it does that just mean that houses over $75,000 are eligible up to 150k? Or would I be eligible for 15K because my house cost 95k and I received the full $7500?

 

Also, I purchased in August 2008. I've heard talk that it wouldn't be retroactive. Why wouldn't it be?

Message 54 of 329
Anonymous
Not applicable

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

Hi Elevatn, Smiley Happy

 

As you know, the devil is in the details.

So we'll have to wait and see what the 

final version looks like.

 

But for the sake of argument, let's use your example.

Let's assume the new cap for the tax credit is $15,000.

 

Based on your home purchase last August for 95k, that means

your tax credit would be $9,500 (10% of purchase price).

 

Anyone else who qualifies for the credit and buys a home for

150k or more will receive the maximum tax credit of $15,000 .

 

Partial tax credits are also available, but they phase out completely

for single filers who earn more than 95k and for married filers earning

more than 170k. Here's a link that explains how partial tax credits work.

Focus on Questions 6 thru 8:

 

http://www.federalhousingtaxcredit.com/faq.php#4

 

Regarding your second question: the original date for qualifying

for the tax credit is April 2008. Since you bought your house

last August, you should be fine.However, there is some talk about

pushing back this date to the beginning of 2008. But right now

it's just nothing more than conversation...

 

Like I said, the final version (along with the final details) are still

up in the air. The Senate will be passing their version shortly, but

the final version will be hashed out in a joint committee before

reaching the Prez's desk for signature. So let's keep our fingers

crossed and hope for the best. Smiley Happy

 

CanDo

 

"The right attitude is everything"

Message 55 of 329
v8eaterWRX
Contributor

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

CanDo,

 

If they pass it and it goes to 15k for everyone in 2008 as well, will the extra 7500 be given even to those who have already filed?  

Message 56 of 329
Anonymous
Not applicable

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

Hi V8,

 

We'll have to wait and see what the final bill looks like. I'm sure

you would receive instructions on how to claim the additional

funds if, in fact, you were entitled to an additional 7500. 

 

But like I said, the devil's in the details. So don't get your hopes up

just yet. Let's sit tight and see how things play out cuz lots of options

are on the table..... 

 

CanDo

 

"The right attitude is everything" 

Message 57 of 329
ponderous
New Contributor

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

Is there any talk yet of allowing a portion or even all of the credit to be used as a down payment source, or closing  costs, etc?
Elizabeth
3/23/09 - Eagle Home Morgage pulled a 742 on me?!!! WooHoo!!!!

3/16/09
TU 708
EQ 692
Message 58 of 329
Anonymous
Not applicable

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

Hi ponderous, Smiley Happy

 

If I'm not mistaken, both the House and Senate versions

allow for the tax credit to be used as a downpayment.

The Senate version now being debated wants to raise the

cap on the tax credit from $7,500 to $15,000 .

 

But once again, this is a very fluid situation. I think towards

the end of this week we'll have a better feel for what the final

bill might look like. Let's stay tuned for more details....

 

CanDo

 

"The right attitude is everything"

Message 59 of 329
Anonymous
Not applicable

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

Here's the latest update re the tax credit:

 

There's a Senate proposal afoot that says everyone who

buys a house this year would receive a tax credit of up to

$15,000. The only exception would be for first time

homebuyers --- that credit would be capped at $7,500.

 

No mention was made of income limits.

 

So for those of you who have been looking for a ray of 

hope on this front, this might be it....with emphasis on

the word "might".

 

Here's the link for the Yahoo! article. Just scroll down about

two-thirds of the way to read the part about the tax credit:

 

http://news.yahoo.com/s/ap/20090204/ap_on_bi_ge/congress_stimulus

 

I'm sure more details will be coming as the day progresses....

 

 

CanDo

 

"The right attitude is everything"

 

Message 60 of 329
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