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Stupidly Yours,
Matt
Turning Wasted Cents into Common Sense
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{ 5 comments… read them below or add one }
At the end of your post on the $15,000 homebuyer tax credit you list a link to the text of the amendment which, when clicked, reads:
“The file is damaged and could not be found”
One post I read said that they read the Isakson Amendment and it requires a minimum 5% down payment of the home, which would exclude most FHA loans. Could you comment the this, or perhaps, list how to link to the text of the amendment. Thank you very much for your website.
In regards to this proposed new $15,000 tax credit, my question is about what a tax credit actually means. If I normally pay standard Federal income taxes throughout the year and historically have received a refund at tax time, will a tax credit benefit me in any way? Also, could I change my W-4 form so I would pay taxes when I file instead of getting a refund and thus benefit from this home buyers tax credit? Please help clear this up. Thanks!
Jay,
Yes you could change your w-4’s and get more back up front. What you pay towards your tax liability each month has NOTHING to do with your tax liability.
Read up on tax liabilities and you’ll then understand how the credit will work.
Jay,
As currently written, you would essentially get whatever you paid in taxes for the year back, limited to $15,000. If the bill is enacted, I would work with your human resources department to determine your options.
I have been told by a CPA and a rep from jackson Hewitt that a person who received the $7,500 tax credit does not have to pay that back in full. It will go by your tax bracket and you pay back a percentage of the amount you get. Where can I find proof on it??