homebuyer tax credit extension

[Brett Hartwig]

I have been following the proposed extension to the first time homebuyer credit recently. Today I see the Senate passed the bill 60-37 to extend the credit until september 30th for buyers who had a signed contract by april 30th ( a group of which I qualify for). Question is- is this now a done deal, or does it go to the house of reps, or what? What is the difference between a bill, law, proposal, amendment, etc. Any political experts know?

 

[Brett Hartwig]

researched my own question, looks like it is the house next. would have made the original deadline, but there is so much rain lately, we are having a hard time getting our septic and well in. extension would help alot.

 

[Richard L]

freeport,

I got my homebuyer tax credit ($6500) for the purchase of my new home on Feb 19, 2010. I was allowed to put it on my 2009 Fed Income Tax return. Since you can't get the tax credit unti you file your 2010 taxes, there should be plenty of time for the bill to go through all of the channels...and I hope it makes it through fine.



I think the home buyer's tax credit is about the only substantial thing we tax payers are going to get out of all of this stimulous spending the governement is doing.



Just remember, You have to live in your new house for three years or you have to pay the money back. If this is not your first home purchase (like mine) you must show property tax, insurance, or mortgage records to prove that you lived in your old house for 5 consecutive years within the past 8 years.



...Rich

 

[user 62851]

I can't wait to get my first time home buyer credit come next tax season. I'm so excited.



Richard L, did you have a tax agent do your taxes to make it easier for you? I am thinking that since I usually do my own taxes, come next year, I will probably have an agent do mine, so everything comes out right, because of the home buyer credit.

 

[Brett Hartwig]

well, rain took a 2 day break and we got the septic and well in today. Should make the original deadline after all. Nice to have a little cushion with the extension though.

 

[Richard L]

BeerDelivery,

Nope, I do my own taxes with TurboTax. The instructions on TurboTax tells you exactly what additional paperwork you need to send to qualify for the New Home Buyer Tax credit. If you are a "First Time home Buyer" you will be eligible for an $8000 Tax Credit and you only have to make a copy of the HUD-1 form you will get at closing



I already had a home I bought in 1983 and paid off, so I only got a $6500 Tax Credit but I had to send the HUD-1 form as well as proof that I lived in the old house 5 consecutive years out of the past 8 years. So I sent my Property Tax statements, but 5 years of Insurance bills, or 5 years of Mortgage 1099 forms would have been sufficient too.



The only drawback to claiming the New Homebuyer Tax Credit is that you cannot do electronic filing because of the additional paperwork that must accompany your Tax Return. I was initially informed that it may take from 16-18 weeks for my refund, but I got it in about 6 weeks and was able to track it online. Everything went very smoothly as I hoped it would.



I have used TurboTax for about 16-17 years now, and it works great. The only problem I ever encountered was in 1997 when I was a computer consultant for a company based in the Shawnee Mission, KS area. I did work for them in several states including Pennsylvania. They were registered as open for business in PA so they deducted PA State taxes from my pay. I was assured that I could file a PA state Tax return and get all my money back since I was never a resident of PA. I know that was true, but I could never get TurboTax to distinguish just my PA earnings from all of my earnings that year...It kept saying I owed more because it was using my total taxes from my Federal 1040-A form and did not appear to understand taxes from multiple states.



I eventually gave up and just let PA keep the taxes I paid there.



...Rich