[*67firebird*]

Has anyone taken advantage of the $8,000 tax credit? Do you get the money when you file taxes in 10', or do you get it "2 months later" ( that's what i heard)

I am looking at buying my first home and since i heard about the credit about a month back im more motivated than ever. I'm selling everything that is just lying around so that i can pay for bills and save up all my income. Paying off the 05 civic next week, so that we can have a lower debt/income ratio.

Any info, anyone?

[Bjorn]

not done it ,since I `ve owned several homes...but since its a Tax "Credit", I would think you dont GET any money , you probably get "credit" towards your taxes, meaning you got to have at least $8000 paid in first....and you`d get the credit when you file for your taxes....and a 'normal' tax return pmt ...thats how I would understand it....
I could be wrong.

[Old Blue 66]

Originally Posted by Bjorn

not done it ,since I `ve owned several homes...but since its a Tax "Credit", I would think you dont GET any money , you probably get "credit" towards your taxes, meaning you got to have at least $8000 paid in first....and you`d get the credit when you file for your taxes....and a 'normal' tax return pmt ...thats how I would understand it....
I could be wrong.

That would be my understanding. I dont believe the government is going to mail you a check.

[*67firebird*]

Well, fiance's sister is a loan officer, and her friend recently got a home and i spoke to her myself and she told me she got $8000!!! Other thing is that the sister in law said that i could use some of the 8000 as down payment for the house. so if i wanted to use 2000 of the 8000 i could.... so ...

[marriard]

This faq seems pretty good on the subject.

http://www.federalhousingtaxcredit.com/2009/faq.php

It is a tax credit. You will only get an actual check if you have a tax requirement of less than the total amount (so you owe $4000 of tax, get a $8000 credit, get check for $4000!) but in reality you should only get money back if you have already filed a return that needs to be amended (see faq) which may be your friends situation.

Also there is no legal way to use this actual down payment as you need to buy a house to get the credit, however you could reduce your withholding to help build your down payment or you can get basically a loan of $8000 from HUD in anticipation of getting the tax credit (see faq again #19 & 20) so I guess that you could consider this as getting the tax credit for the down payment.

You better be sure you are qualified though - if you are not and take the loan or withhold extra money you will be liable for the money.

Bit of a mindfield, but looks like a neat program IF you qualify and IF you can afford a house.

[*67firebird*]

yes she did amend her taxes in order to get her money, but a co-worker's son is in the process of buying and he heard that its kinda like a rebate, and gets it 2 months after closing.
Thanks for the link, lots of good info.

I think a plus for me will be that i never owe the IRS any money, so i could get the 8000, plus the usual 800-1200 i usually get, right?