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$8,000 First Time Homebuyer’s Credit
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Are you sitting down? Do you have a pen and paper handy? Looks like the $15,000 tax credit to buy a new home has been scrapped, saving $35 billion from the stimulus package, and replaced with an extension to the $7,500 and an increase of that credit to $8,000. The $7,500 first time homebuyer tax credit was set to expire July 1st, this $8,000 provision would extend that. CNNMoney is reporting that the credit is available for those who buy a home between Jan. 1, 2009 and Dec. 1, 2009 (source).
The cost of the extension and modest increase is pegged at around $2-3 billion. Another key provision? The repayment requirement will be nixed. That means the $7,500 15-year loan at 0% interest will now become $8,000 cash money in your pocket. I believe existing borrowers would have that loan forgiven.
Home buyers who hoped for a $15,000 tax credit to buy a new home, as promised by the Senate, will be disappointed. A proposed $35 billion credit to support home sales was jettisoned in favor of a more modest $2 billion to $3 billion provision.
The proposal would eliminate the repayment requirement in an existing tax credit for first-time home buyers, and raise the credit to $8,000 from $7,500. Congressional aides cautioned Wednesday that the credit’s size was still subject to negotiation.
Congress Strikes $789 Billion Stimulus Deal [Wall Street Journal]
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I’ve heard that the $8k version applies from Jan 1 – Aug 31, that it won’t have to be paid back, and that it’s for first-time homebuyers only. The problem is, you can only find a sentence or two here or there. There hasn’t been anything definitive released yet (afaik).
I would also assume it phases out at $150k like the prior $7500 proposal. Cool for rural markets, useless for urban centers where people make more money and housing costs more. Rural Indiana rejoice, coastal areas – forget about it..
I recently filed my taxes and am expecting my refund any day now; I took the $7,500 first time homebuyer credit as we bought our first home in May 2008.
Now that the new stimulus plan has passed, will we receive $8,000 back instead of $7500? And will we still have to repay the $7500? I am still somewhat confused as to what happens from here.
I think they are going to forgive your loan to prevent people from filing 1040x amendments
Ray
Am to understand that you purchased a home in May 2008 and on last years 2008 taxes you filed for the home buyers credit. Did you actually receive an additional $8000.00 from the government that you were able to put into your pocket? I am not quite sure what to expect. Please get back to me. Thanks so much!
I also filed my taxes in early February claiming the homebuyers credit. Now I’m confused as to what to expect from my return (which hasn’t arrived yet): the original $7500 (with the pay-back clause), or the new $8000 and no pay-back. Checking with others on this, and I’ll pass along whatever I find.
I agree on the confusion. We purchased a home during Aug 08′ and want to know if we are going to have to pay it back if those that purchase a home during 09′ are not going to have to.
If you bought in the calendar year 2008, you are not eligible for the $8,000. You can still claim the $7,500 recapturable credit (you will have to pay it back). For those individuals who purchased, or are going to purchase in 2009, they may claim the $8,000 credit and not have to pay it back, but not the $7,500.
In conclusion:
Bought in 2008 = $7,500 and payback
Bought in 2009 = $8,000 and no-payback
The government completely fumbled this one. They enticed homebuyers at the end of 2008 with the $7,500 and then pull the rug out from under them and deny them the amended credit.
Correction: Bought in 2008 = $7,500 and no-payback!
It will be forgiven! FYI
Where are you getting this information from?
Wrong
I’m with nickel. I can’t find anything except for the same two sentences anywhere. Read that the bill will be posted sometime today on the house/senate site.
saladdin
I read the entire wording on the White House website and it looks like the $7,500 would have to be repaid for people that bought their house prior to Dec. 2008. I bought my house in May 2008 also and took the credit. I might have just misunderstood the wording, but nowhere did it state it would not have to be paid back. That wording only applied to the “new” tax credit.
Where do they come up with these dates and numbers? Why $8,000 and not $8,200? How come it’s until Aug 31st? Wouldn’t ending it at the end of a quarter (or better yet, for one calendar year) be more appropriate?
Then again, if they are “wasting their time” with these details, how can they have enough time to figure out how to save our economy?
The object of it, is to stimulate the economy. They want to put a fire under people to try to get them to purchase homes(or large items). Intern putting more money in the economy. And hopefully creating jobs and a cycle of wellness.
I purchased my home in November. I hope I get the extra $500.
Are the dates for 2008 or 2009? The old $7500 plan was 08. Is this just a continuation until Aug. My wife and I closed on our house in Jul 08′
It looks like they are extending the current dates from the 7500 credit. So if you closed in July 2008 your golden and maybe $500 more in the bank.
Figures, I was praying for that 15k.
We qualified for the 7500 dollar tax credit because we bought our house in may of 2008. Is the proposed plan going to forgive that loan in this stimulis package
I thought I read elsewhere that the old $7500 new homeowner “credit” was not changed by the stimulus bill. It would remain the same no interest loan and that the new $8000 plan would go into effect on new homes purchased starting 1/1/09 and it was a true credit.
I purchased my 1st home in Oct. ‘08 and I’ve been holding off filing my taxes hoping to learn that the credit would be retroactive, but I don’t believe it is. I’d love to see some proof that I am wrong though.
I think this is the most accurate answer so far. I have done extensive research and kept myself updated on the latest news. So far, Rob’s answer seems on the right track.
I myself closed on my first home in October of 2008. Unless the new stimulus bill REPLACED the Recovery Act of 2008 (which I do not believe to be true), people who purchased homes before January 1, 2009 will still be eligible for the $7,500 credit… but the caveat is that you will have to pay it back.
Those who bought after January 1, 2009, will receive $8,000 with no obligation to pay back.
Those who bought before 1/1/2009, you (and I) didn’t just miss out on an extra $500. Technically, we missed out on the entire $8,000.
Nonetheless, I can’t complain about a 15-year term interest free loan.
Regardless, my accountant is looking into this now. I will update when I get more information.
I hope that the senate/house realizes we were in a recession last year. If they are going to reward people for buying in a recession, it should apply to those who actually did that.
Even though this may retro and give me 8k for free, I still think the entire bill is going to destroy the US.
I believe the intent of the credit is not to reward for past purchases, rather, to spur new (more)purchases (you don’t need to be spurred to purchase, you have already done so. Evidently when you purchased, you were satisfied with the terms and conditions which existed at the time or you probably wouldn’t have purchased. That purchases made by people afterwards may entitle them to a better tax credit, a lower home price, a lower interest rate, is just a result of the crap shoot that life is.
I have to say, I’ve been a little miffed at the idea that this $8000 credit that won’t have to be paid back will probably not do me any good since I closed on December 30, 2008. However, I’ll admit that Jeff has a point when he mentions that people who purchased homes last year were happy with the conditions at the time. As much as I’d like to gripe about missing the extra cash by two days—and I will probably still simmer about it for a while—I can grudgingly acknowledge that special incentives come and go, and it truly is a crap shoot. Of course, admending the credit to the starting dates of the old credit might not be a bad idea—the people who closed on January 2 did not know a credit was coming, so why should they get the additional money and not those of us who purchased a little sooner? Why backdate to January 1 instead of just offering it to people who purchase from this point forward?
“I still think the entire bill is going to destroy the US.”
How?
Unfortunately, we’ll never know if the “do nothing” approach would’ve been better, even though it seems to me that a lot of very smart people warning of financial catastrophe should be enough to give even the most conservative and libertarian among us pause. If the economy continues to tank, naysayers will claim that the stimulus ruined the country. If the economy recovers in a year or two, naysayers will claim we’re lucky that stimulus didn’t destroy us.
People complain about what specifically the stimulus gets spent on…but I agree with one things I read…in response to complaints about funding for the arts, an economist remarked that it doesn’t matter if a million construction workers get jobs or a million artists. A million jobs means a million sets of paychecks to buy stuff that keeps stores opens and car dealers selling and restaurants cooking.
I don’t really understand what the alternative was to a stimulus/spending bill.
I agree! They should have let the big corporations fail. And let the mom & pop shops thrive!
Now everyone is gonna fail.. and my kids are gonna have a huge shit storm to pay off!!
While I too have some philosophical reservations about this bill, and am not sure we can fix our problems by simply throwing more money at them, I don’t go so far as to believe this will destroy the country. If we are going to drop nearly a trillion dollars into a project, I would much prefer it be spent on the people of our country, the infrastructure of our country, public assistance to our citizens in these hard economic times, than to be spent on a mis-guided war we were PROMISED would cost a mere 80 billion to conduct (the rest, we were told, would be covered by the oil revenues)
I read in a cnn report the new deal is for Jan-1 2009 to Aug-31 2009, I still have yet to see details though……..
I qualified for the first time homebuyers tax credit in every aspect except for the date of closing, January 31, 2008, which was before April 9, 2008. So no credit. I was hoping the new stimulas package would either include all of 2008 first time home buyers or a lower interest rate for current homeowners. It doesn’t look like either one is going to happen so the new Stimulas won’t help me. I’ve tried to refinance my house and car and the banks answer is now because the economy is so bad. Any advice from anyone is appreciated.
Hi….I totally know how you feel. We bought our house on March 14th of 2008. We get no credit at all. Dont understand why they picked April 8th, why isnt it for the whole year of 2008?
How does it feel to be a first time home buyer in 2008 before April 9, 2008? I found out.
If you buy a house do you automatically get the $8000 or do you only get the amount that you have to pay in taxes back? If it is the amount that you have to pay in taxes, is it over the course of 2 years?
It seems that there is still no definitive answer on whether existing first time home buyers will get the $8,000 in the form of a true tax credit and not a repayment. I hope that it will be given as cash as I am a first time home buyer last year
The conference report is now available on http://www.cspan.org
The conference agreement extends the existing homebuyer credit for qualifying home purchases before Dec 1, 2009. The maximum credit is increased to $8000 and waives the repayment of the credit for qualifying home purchases Jan 1, 2009-Nov 30, 2009. A 2009 purchase may be treated as occurring on Dec 31, 2008. If home is disposed of and ceases to be the principal residence within 36 months of purchase the present rules for repayment apply. The effective date: the provision applies to residences purchased after Dec 31, 2008.
The existing law still applies except as noted in the earlier post. There are also changes in regards to the DC home credit and mortgage revenue bonds.
I heard that they were going to get rid of the $7,500 if you did not buy a house after January 1, 2009. Has anyone else heard this? I hope it is not true.
You can always depend on our goverment to get your hopes up just to have them tear them down. If you offer a credit to all buyers leave it.
I feel that this $8,000 credit is a slap in the face to everyone who bought a house under the old $7,500 credit provisions. We went out and did exactly what the government wanted us to do by buying homes to “stimulate” the economy and now we get to watch those who sat on their hands and did nothing because they were too afraid reap the benefits. I closed on my house on December 28, 2008 and have to pay back my “credit”, but those who closed just 3 days later don’t. How is that fair?
It’s not and that is why I won’t be paying mine back! Oh, the government will think that I am. Every year for the next 15 years I will dutifully add $500 to my yearly tax payments, but then I’ll just find a way to skim $500 off somewhere else. A madeup charitable contribution here, a little less small business income there. I have never, ever cheated on my taxes before, but you can bet, for the next 15 years I will cheating to the tune of $500 per year.
Or, you could take the $7500 credit and pay down your balance, and pay less over the life of the loan. That’s some curious morality there that you can suddenly break the law because new programs have been instituted. The tax code changes every year, and is somewhat irrational like the whole housing bubble in general. Your scheme will be that much more clever when you get audited.
I wasn’t waiting for the government to pile on more pork, I was building up a downpayment and waiting for the market to bottom. I’ll take the $8000 credit since I was planning to buy a home anyway, but I wish the government would grow up and come up with plans that will work for the long term instead of using scare tactics to railroad the pork train down our throats.
It sounds like you do already… The bill has not been signed yet so changes can be made and already your moral compass is waaaay off. Thank the good Lord you at least have the option of getting a home and having a ZERO interest loan. There are many people living hand to mouth. Think about that.
BOO HOO! I did’nt know there was so many whiners like you who bought homes. So don’t take the interest free loan. Also I bet you always cheat on your taxes the way you sound. Hopefully this all comes back on you. Your another reason why the things are the way they are. Good job tax cheater!
I completely agree KatieS. It is a slap in the face. We closed on 8-8-08 and we just finished our taxes and rec’d the $7500 “credit” and have to repay. I think they should back date to cover everyone that originally qualified. Not fair!!
I agree! I closed on my first house on 10/12, and I qualify for the “credit.” If I take it, then I will get a nice bit back, but yet have to repay it over the next 15 years. And if I sell the house within that 15 year time period (which I will), I’ll have to repay in full that next tax time. That’s crap. Why should I take an interest free loan from the IRS?
I’m with Tameka; they should make the credit a true tax credit for everybody.
I agree Jack. If the report is final then Congratulations 2009 home buyers. We bought our home in Oct. 2008. We bought the home with the government telling us we can take a $7500.00 credit. I qualified for the credit. Now, possibly, no credit & 2009 buyers get $8,000. We put almost all we had for closing during a recession, but I didn’t worry because the government saw our need just to take it away.
I hope I’m wrong.
So OK. What is the current temperature on those who did get the 7500$ “loan” during the last year. I purchased my home late November, only to hear that those who purchased a month after got this money as well for FREE. I’m none too happy. I might just sell the home and probably not make any money off of it, and make the gov’t pay for the 7500 they gave me since they forgive it. Eat that.
Does anyone have a status update on repayment for that 7500?
I just read the final bill that was negotiated, and forgiveness of repayment for the tax credit is limited to houses bought after Dec 31st 2008 but before December 1st 2009. If you bought a house under the old credit last year, it looks as if you’re going to have to repay it.
Don’t feel too bad though, I’m looking to buy my second home this year, and the moron politicians just took away the $15,000 I was going to get back. Anything put in this bill to stimulate the economy has been stripped down or completely taken out. They negotiated 50 billion out of the final price and took away tax breaks for houses, cars (the two biggest hit industries), and lowered the tax break to $400 a person. You mean to tell me that there was nothing else they could’ve cut out of the $800 billion dollar bill?
All things considered, I was still against the bill even with $15,000 coming to me, but if it was going to pass anyways, it would have been nice to put away $15,000 for when they raise taxes to pay for all this spending. Goodbuy America, hello socialism.
Opinion Aided,
Where did you read the final negotiated bill at? I can’t find it anywhere and would like to read the language for myself. Thanks.
I’m struggling to understand what *right* you guys have to have your old provision changed?
We purchased our house in July. We have not filed our taxes yet. Are we still elgible for the original 7,500 or when this new bill takes effect will we not get anything?
I believe that you are eligible to get the First time home buyer credit of $7,500 as a loan. The new law states that the credit of $ 8,000 is for the first time home buyers from Jan 1, 2009 to Dec 31, 2009.
does anyone know if we can get both credits..if you closed in 2009….?
No you can’t, you only get one based on the date of the close.
The new home buyer bill is still confusing. Will new buyers get the extra $500 if they claimed the credit last year? Is the old tax rebate of $7500 now a credit. A lot of unaswered questions still to be worked through.
The cost of the extension and modest increase is pegged at around $2-3 billion. Another key provision? The repayment requirement will be nixed. That means the $7,500 15-year loan at 0% interest will now become $8,000 cash money in your pocket. I believe existing borrowers would have that loan forgiven.
IN THIS POST, IT SAYS THAT REPAYMENT REQUIREMENT WILL BE NIXED. IT SAYS THAT EXISTING BORROWERS WOULD HAVE THAT LOAN FORGIVEN.
I bought my home July 08, does this mean that I will be getting the credit and not have to pay for it back???
If I already completed my taxes for 2009 and purchase a house within the deadline, is there anyway to refile my taxes to receive the tax credit in 2009 as opposed to 2010?
I have a odd question, that has yet to be answered. If I close on a new home on March 5th, 2009 can I ammend my taxes that I alredy filed for 2008 tax year and claim the $8000.00 to receive it this year?
Does anyone know the answer to this: If I have purchased a home when I was single and then got married, do we qualify if the house is in my wife’s name (who has never purchased a house before)?
We do qualify under the income criteria.
No you don’t. You need to file single…
Yes Kelly and Nick, you can file an amendment on your 2008 tax return!
It’s a real slap in the face to those who took the leap in 2008 and bought a house for the first time. 2008 was not much better than 2009. The difference of having to pay back the $7500. over receiving the $8000. for free – is absolute nonsense. I am fine with the repayment program and I not fine with others receiving “free money”. Nothing is ever for “free”. The rest of us not benefiting from this new program will be sure to pay for this.
You’re still getting a $7500 loan for nothing, which is better than getting $0. I find it surprising that you were happy to receive the $7500 loan and didn’t find it to be nonsense, but now that others can get $8k it suddenly becomes absolute nonsense? Seems hypocritical.
I dont believe it is hypocritical at all. Taking a loan (interest free or not) you are still liable to pay it back. Free money is free money. Those that purchased a home during 2008 are blessed yes, to get an “interest free loan” but in any case we still have to pay it back. Homebuyers during 09′ do not. That isnt easy to sink your teeth into. No it’s not fair, no it’s not something to easily accept, but how many of the IRS rules give you warm fuzzy feelings?
“Slap in the face.” That’s overly dramatic don’t you think?
saladdin
Well you should’nt have a bought a home then. Since when did the goverment tell you you had to buy a home in 2008? How about receiving nothing instead? If you don’t like the loan then don’t take it. It’s a simple choice YOU could make. Just like the choice you made to purchase a home in 2008……Right..Stop whining!
Hmmm, so you are upset that you have to pay back 7500 and pay for those who are getting 8000? Don’t you think renters and those who couldn’t buy a house last year or now feel the same way about you? Pretty sad that you feel that way and may I add, hypocritical. Tell you what, I will start a foudation and ask people around the globe to donate to help you pay back that 7500, ok?
I qualify, but I’m not so sure I’m going take it. Just because it’s 0% doesn’t mean it’s a good deal. Debt is always bad, but especially when it’s from the IRS.
They aren’t paying for ours, we have to pay it back…that was the point, everyone will pay for the new 8000 because it is not being paid back by the recipients, those that got 7500 are paying it back entirely themselves…i’d rather have help from millions of tax payers to pay back 8000 than to have to pay back 7500 by myself…but still, it does suck and it doesn’t seem fair, but oh well…my friend who bought a house in 07 got nothing, she isnt any more happy about our 7500 or the new 8000 than anyone else is…and next year if they increase it again plenty of the people who got 8000 will be bitching…its tough luck and theres nothing we can do about it but try to be happy with what we got if we were lucky enough to get anything
OK, everyone go to the Library of Congress and look this bill up. To have a clear understanding of where you stand in this new bill VS. the old $7500 credit. Remember if you bought under the old bill before Jan 1 2009 you have to repay it. Thats the way it is, so deal with a interest free loan over 15 years. Some of you sound so pathetic. The goverment did’nt hold you by gunpoint and tell you to buy a home, nor did they stipulate the interest rate you qualified for or what you did to get your credit score. Stop whining! Do something about your situation. It takes true effort to survive and make it through tuff times, just don’t sit back and complain about why the GOVERMENT put you in a situation that you created. All these people who want bailouts on there homes where they signed and agreed upon terms should be let go as well as the banks. If you can get a $7500 interest free loan then take it and put it away. The same goes for the $8000. Just stop WHINING.
OK, I am closing on a house (I hope) end of February 2009. I waited. I saved. I am buying a nice, 100 year old house and it needs to be: painted, basement repointed, and re-roofed. So that $8,000 is going to the wages of the painters, mason: the roof I’m going to have to finance on my own. It’s gonna put a few people to work, help renew a sound but aging structure, so I think its a good plan.
Count your blessings: Got a job? Got a house? That’s pretty nice. I waited an extra 6 years to buy because the prices were absurd. They say this is the housing crisis. I think the housing crisis happened when home prices went up 75% in three years. My wage didn’t go up 75%!
My husband and I purchased our first home in Oct 2008, We were more than happy to take the 7500. It would be nice not to have to pay it back but if we have to we will. Our income has been cut in half, he works in the oilfields and with the gas prices falling his company has laid off a couple of hundred workers. I am an independant contractor that was making 90% of my income through a state funded program and we all know how thats going. We are going to use our tax refund to keep us going until this all passes over, and it will pass. I thank the Lord that we were not in the bunch that were recentley laid off. All in all we still count ourselves as blessed. Our finances did not make us who we were or are today. We have our kids and our Faith and each other. The goverment is going to do what ever it wants but the president it not the final say in our lives. I was trying to follow the stimulas news but its kind of a waste of energy at this point. I am happy for those who get the 8000, that was there blessing. I can’t change it so why waste my time being upset. Mine will come and so will yours. I am just trying to stay focused and enjoy what I still have today. My parents lost it all during the Regan thing and they ended up divorcing over the stress. I refuse to end up like that.
It’s so nice to see a person hold accountability, not like a lot of people here who feel they are owed something. In the end, you are right, the Lord has and will bless us. He giveth and he taketh away. Those who feel cheated or to some extent feel like they were slapped in the face i can only say one thing… thank the good Lord you are alive and have a roof over you head and food in your fridge. Many, especially now, are not so lucky.
Did no one read this?
“I believe existing borrowers would have that loan forgiven.”
This to me means the people who borrowed the $7500 no longer have to pay it back.
I’ve read this on more than one website so I’m not sure why previous borrows are freaking out.
Jay – Actually that is not correct. Only those 1st time buyers who buy Jan 1, 09 – Dec. 31, 09 will receive the $8,000 and not have to pay it back. Those who bought April 9,08 – Dec 31, 08 will receive the $7,500 and have to pay it back in $500 increments. That’s how the law stands now – the new changes are only retroactive to January 1, 2009.
You are correct except I believe everyone is entitled to the $ 8,000
I am scheduled to close on my home on April 15, 2009. How do I claim the credit on my 2008 return?
sooooo…..if you bought in jan or march you are out of luck completely? i am confused and agree how do they come up with these dates.
I am getting married May 23, 2009. My soon to be husband has owned a home in the past three years. I have not and everything for the house would be in my name. If we don’t close before we get married does that mean I don’t get the $8000? I called the IRS but then duh its a holiday. I will call tomorrow.
ANYONE HAVE ANY GOOD ANSWERS??
You need to file single…
Can I do that even if we get married? Also if I amended it to my 08 returns I was single then. Even if I get married as long as we close before nov 30 2009 and i amend to my 08 I still get the credit because it was on my 08 not my 09. correct?
Geez, 8 friggin days! i closed dec 22nd. Son of a….i guess im on the hook to pay back. I was happy to get my 7500 loan but would be happier if it turned into an actual credit. So i guess my question is do i get another 500 bucks?
Dave, it appears you’re “stuck” with the $7,500 loan – with the annual payment of $500 starting in 2010 – better than a sharp stick in the eye – as my Mother used to say!
….. which all but wipes out the $400/yr ‘tax break’ that we’re going to get. I think a lot of people are saying “Well crap, I would have waited!” because NOW buyers are getting a)lower interest rates, b)MORE tax credits that don’t have to be paid back, and c)an actual tax break.
Yeah, I would have waited 6 more months too. *sigh* Oh well.
Here is my situation. I bought my house on January 28, 2009. I already took the old $7500 credit on my 2008 taxes.
Here is my question – even though I bought my house in 2009 and filed the credit on my 2008 taxes am I eligible for $500 more bucks and do I not have to repay now since the new law went into effect?
If someone could give me an answer on this that would be great!
Ok people. You should read more carefully. The $7500 credit that WAS required to be repaid has been changed to an actual credit. IF you bought your house in ‘09 you can get $8000 instead of $7500. So yes, we (me included, I closed on Dec. 19, 08) get $500 less, but we ARE included in the non-repayment….get it?
That is not true; This comes directly from the code.
f) Recapture of credit.
(1) In general.
Except as otherwise provided in this subsection , if a credit under subsection (a) is allowed to a taxpayer, the tax imposed by this chapter shall be increased by 62/3 percent of the amount of such credit for each taxable year in the recapture period.
(4) Exceptions.
9(D) Waiver of recapture for purchases in 2009. In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before December 1, 2009—
(i) paragraph (1) shall not apply, and
It looks to me, after reading the actual code sections, that the credit for everyone becomes $8,000 regardless if you bought between April 9, 2008-December 31, 2008 or in 2009. HOWEVER people who bought in 08 must recapture the amount borrowed starting with your 2010 tax return for the next 15 years; where the people who purchased in 09 don’t have to recapture as long as they don’t sell within 3 years
No, I just did research on this and the ‘08 buyers do still need to repay the $7500 tax credit where as ‘09 buyers get the $8000 and do not have to repay.
That is exactly what I said; the only difference is that I believe that people who bought in 08 get to “borrow” $8000 not 7500
Im not sure if i qualify for the credit. I am a first time home buyer but there is a co owner that is not a first time buyer. i closed in dec 08. Do i qualify?
if your due to get a refund say 1000.00
and you qualify for the 8000.00 credit will you get a check for 9000.00 or is 8000.00 a cap
You will get 9,000.00 not an 8,000 cap
Lucky me. We were supposed to close on our house on Dec 29. It was posposed until Jan 2, 2009. We were upset over that, but I guess it worked out in our favor!
I’ve already filed our ‘08 taxes and have received the $7500 prior to the bill being passed. Do I need to file an amendment now, or is it just too early to say?
Thats how we felt last year…we were set to close april 3rd, and it was postponed until april 9th…so we almost didn’t get anything…trying to remember that when we get frustrated about the new credit not having to be paid back…
I purchased my home in December of last year. I could have waited, but the house I wanted might not have. When you buy, these are the things you have to weigh and decide on. I don’t feel too bad about the INTEREST FREE loan. I feel that EVERYONE should have to pay it back. The fact that buyers won’t have to pay it back won’t stimulate the economy any more than people that will have to pay it back. People would still apply the money the same way. The government would save itself a ton of money! Who among you would not take the credit if you had to pay it back???……….Thought so. Why are we giving this money away??? I rather the money be applied in a more useful manner. STOP COMPLAINING ABOUT PAYING IT BACK! COMPLAIN ABOUT WHY ANYONE WOULDN’T HAVE TO!
THANK you! What on earth is the point of handing anyone eight grand? I’m grateful for the $7500 I’ll have to pay back, beause the interest-free loan is going to help me pay back for the appliances and window coverings on my house. I think that part was a great idea—it gave me a chance to buy a house that would have otherwise put me in debt, and might possibly have not been an option for me. Definitely “stimulated” me to buy now instead of waiting. But this new one that doesn’t have to be paid back? WHY?
Housing drives gdp which drives quality of life.
saladdin
What a whiner. Its ridiculous for you to be angry that others have a better situation than you. Sad.
Q&A here: http://www.usnews.com/blogs/the-home-front/2009/02/17/first-time-home-buyer-tax-credit-6-things-to-know.html
Hey, here’s another thought: suppose there are any people out there who, instead of think what a great opportunity this could be, might instead be thinking how great the deal might be in eight months if they hold out even longer?
I’ve been reading so many angry responses from people who feel they were swindled out of $8000, and look foolish because of it. There must be people who have not purchased yet who are thinking “Gee, if I buy now, I’ll get a fantastic credit, but what if they offer something even better down the road? What if no one buys, so they DO offer the $15,000 they were talking about before?”
What if this new credit causes people to worry that if they buy now, they will be the foolish ones months from now when an even better credit comes out?
I can’t believe our goverment thought that giving the money away was a good option…
What’s your solution?
saladdin
Anyone find any paperwork regarding the amended tax forms needed for filing for the 8000 credit on 2008 tax return? I can’t seem to find them anywhere.
I looked for the 1040x on the IRS website and found that they are COMPLETELY outdated. Even the instructions are outdated. The available 2007 revised 1040x instructions do not properly follow the lines on the 2008 1040A nor 2008 1040 form.
I also went to the IRS local office. They do not have them up to date instructions either.
Essentially it is pretty much impossible to fill out an ammended return a this time, rather convenient for the IRS.
Even the dependent deductions are wrong on 1040x from the website. as it reflects 2007 deduction rates. NOT 2008.
Adding the FTHBTC form is as simple as adding just that when you are able to complete a 1040x. Plus adjusting the credits on the 1040x in the appropriate places.
As far as the $8K I have heard rumor that cannot be used until Mar 1. Considering it was not signed into law until 2/17 that is not too bad of turn around time.
Lee
Hey All,
When reviewing the credit mobile home/trailer owners are disqualified. My home has gone in value from $34,000 in 1996 to around $2000 in todays market.
not to mention the fact that we still owe $1900 on the house and even if it was paid off we still need to pay lot rent. PLUS abide by unregulated lease agreements, that impede our inalienable human rights. NOT A JOKE EITHER!!
I think we are LEFT out in the cold on the FTHBTC. Funny considering NO OTHER gov’t or lending agency consider a BOX on wheels a home. Unless it is on a permanently affixed foundation which mine is not. Actually uses metal straps.
Well at least the drug dealers out on parole will qualify.
I’d only qualify for the credit if I divorced my wife. nothing like sticking it to the working family trying to be happy healthy and TOGETHER!
Lee
My boyfriend owns a mobile. It is totally unfair that a mobile home in a park is considered a “principal residence” in regards to the $8000 home buyers credit.
You don’t own the land, so you have no rights and no say on what happens in the park. It is nothing like owning your own home on your own land.
It is interesting that gov’t loan programs like Rural Development, for one, consider mobile home owners in parks as NOT owning a principal residence for qualification for their purposes.
So on one hand, the gov’t says it is a principal residence and on the other, it isn’t. It should be defined the same—a mobile on a rented lot SHOULD NOT be considered a principal residence.
FORM ON IRS SITE…. CHECK IT OUT
http://www.irs.gov/pub/irs-pdf/f5405.pdf
HOPE THIS HELPS YA’LL!!
They have the updated forms. Go to the IRS site then forms and publications. Then go to form and instruction number (pdf).. Click where it says posted date. Then it will be the first form. Make sure you have it set going from 2009 and down.
The 5045 First time homebuyer form is right there for 2009 revised Feb. 2009
i am a first time home buyer i bought a home in 2008 july,what kind of credit do i get,kindly reply me i need a answer.
You get a credit for $7500 that has to be re-payed over 15 years with no interest.
Only homes purchased in 2009 qualify for the new $8000 credit that does not have to be re-payed.
I think that the $7500 was regarded as forgivable in Jan 2009. No matter what. I would still check with your accountant to be sure.
Worst case scenario, by applying it to your loan in 2009 you will still save $8600 in interest as the $7500 is INTEREST FREE!!
But honestly I think it was ammended in jan or early Feb. to make it 100% forgivable so long as you stay in the home for 3 years! Definately worth the research and the CPA fees!!
Lee <
Here’s a question for you. Let’s see. $8000 is a little more than 2.5% on a $300,000 home. But, what if (like ALOT of economists are saying) home prices come down over the next year more than 10%? Even 12%!? That would be $30,000 – 36,000 off of a $300,000 home. That means that it could save you much more money to wait and buy a home next year as opposed to taking the $8000 now. (which I think you wouldn’t get until next year anyway.) Imagine, getting that check in the mail, but knowing you could have bought your home for $30,000 less?? And, then you might even get that bigger credit next year anyway. . . anyone opposed to this arguement?? Just wondering. . . We may just rent another year . . .
There’s always a risk or prices going down OR up. If you find the right house for you, then I think its a great time to jump into the market. If you want/can afford to wait, give it a shot, never know. Lots of foreclosure deals out there right now.
I had done my taxes early. Purchased a home a little after. $8000 credit comes out and i’m considering an amendment. With the revised version of the form 5045, couldn’t we submit that version of the form if we bought a home in 2009? I don’t mind doing it by hand:)
I have a mobile that I bought and paid mortgage interest over the last seven years, however, we never could claim it on our taxes because we were renting the pad rent. The trailor was on our personal property but not real estate. Would I still be consider a first time home buyer?
You could only claim the credit as a first time buyer if the property wasnt yours for 3 years. For instance, if you sold a home Feb 2006, didnt own/tied to any property for three years after, you could claim that credit Feb 2009.
So if the trailor is owned and no mortgage interest claimed, and I paid pad rent during that time, still a first time buyer? That would be great at this time.
Do I have to pay back the 7500 if I bought late November 2008? I would like a sure answer if anyone knows
Daniel – yes, currently if you bought in 2008, you have to pay it back. Sorry.
If I buy a house in March 09, can I claim the $8000 tax credit on my 08 taxes.
Yes, if you already filed your taxes, you can file the amended form, now available on the IRS website (URL is listed in one of the above conversations)
IS THAT WANT I NEED TO DO….BUT THEN IT WILL PROLONG GETTING THE CORRECT MONIES BACK RIGHT
I have not done my taxes yet until I know how it is all working out.
I CLOSED ON FEB 10,2009 I DID MY TAXES ON TUBO TAX 1 WEEK AGO….IT STATED I WAS GETTING 7500.00 BACK….BUT I SHOULD BE GETTING THE 8000.00…WHAT DO I DO KNOW SINCE I ALREADY FILLED BEFORE THE NEW BILL OF 8000.00
Not sure what to tell you on that one, except to stop using all CAPS in your conversations.
Probably worth a few bucks to take this to a qualified tax person, although my guy was really unsure how it all would work out. They are just getting the correct forms and information this week too, so best bet is probably to wait a little bit for all the forms and information to get out there.
I’m pissed! I bought the day after Thanksgiving, tentativley planning on buying the home Jan 1 2009 but was told by the bank, “were fearful that CREDIT will not be available by then” I was pressured into buying 1 month ealry and didnt make my first mortgage payment until Jan 1. So now, I’ve been screwed by the greedy bank, who got us into this huge nasty mess and now I was just screwed by the government, who bailed the banks out of thier poor business decisions….Leaving us all to pay for thier mistakes.
Additionally, with the new change to the stimulis, the governments mindset is, “we already got all of the potential money we were going to get from the 2008 buyers” (not enough I guess)….”now what can we do to get more”? I guess they chose to screw those, who they know cant bring them any more real estate cash! (in other words we provide no benefit to them) 2008 buyers (including me) were another victim of our twisted, mutilated, selfish, greedy no good government…..Of which us, our kids, and our kids kids will be paying for the rest of eternity! If the world even lasts that long with all of the GREED!
You are still eligible for the interest free loan. So, I don’t think the government is “screwing you” out of any money. Think of all the people that bought last year, the year before, the year before…..and so on. None of them are getting the 8K. This anger is ridiculous. Maybe next year they’ll offer 15K, should all the people that bought this year be pissed too? You bought because it was a good deal for YOU at the time, no one forced you to buy. Get over it.
The alternative to a “stimulus package” is very simple. Do nothing. Let the markets sort it out without government interference, which is, by the way what got us into this economic depression in the first place. Spending signed by BOTH political parties led to the current economic implosion! When Bush was in power, the Democrats and Republicans approved low interest rates and uncontrolled spending. The same situation happened under President Clinton. Both, I repeat, both political parties signed legislation and approved funding! The standard of living has to drop for ALL Americans…this is why. We do not follow the Constitution, instead we follow a fiat money system that is backed by nothing. that leads to massive inflation. The fractional reserve requirement in commercial banks is now non-existant. Printing huge amounts of money leads to huge amounts of inflation. When we ship jobs, particularly high paying manufacturing jobs overseas that hurts the American economy. When illegal and legal immigrants take jobs from Americans, in the long term, it hurts our economy. Therefore hurting Americans. Socialism and wealth redistribution has never worked in any society in the history of the human race! When the government forces private lending institutions to give loans to people without following credit worthiness guidelines and artifically sets interest rates. The consumer credit housing market collapses as a result. When people are unemployed, taxes are raised in order to pay for increased welfare payments. More taxes equals less economic growth. ture. Taxing wealthy individuals will make them start business in more business friendly places. That means outside the USA. That leads to the entire cycle to continue to destroy itself. All government money, services, property, etc. is taken from the citizens in the form of taxes. There is no such thing as free, someone is paying for everything. So….. for those of you who voted for Clinton, Bush and especially Obama-heres’s to you suckers!! — Stop fighting the liberal/conservative blame game and instead READ THE CONSTITUTION, learn basic economic theories and read non-politically correct history. The resluts are shocking!
My fiance and I are about to buy a home. Our closing date is March 17 2009. We have both already recieved our tax returns. Does anyone know if we can do an amendment to our tax return and receive the cash this year, or will we have to wait till next years tax return, or my biggest fear that we will miss out completly because we have already filed this year. Any input would be appreciated. Thank you.
Michael,
You can certainly file Form 1040X anytime this year to get the First-time Homebuyer’s Credit.
wel here’s an update on my earlier post on the 7500.00 loan, the friend who bought her home in 2006 said that she doesnt have to pay it back because an agent at the IRS told her she didnt have to and that she was “safe from prosecution”. i figure why is everybody whining about whether they bought too early or too late, have to repay, dont have to repay , qualify or dont qualify. if you want the money just file it, thats exactly what she has done and is spending every penny of it knowing she didnt qualify.
Yeah sure she did. I’de be willing to bet that your “friend” doesn’t exist and that you’re a pathological liar.
What a bunch of BS, your friend is either fictionous or its you trying to make yourself feel better before prison.
I bought my house on February 8, 2009. I already took the old $7500 credit on my 2008 taxes.Here is my question – even though I bought my house in 2009 and filed the credit on my 2008 taxes. Am I eligible for $500 more bucks and do I not have to repay now since the new law went into effect? Could I amend my 2008 taxes?
That Is a bunch of BS. Home prices are down amd they get a break. What about the ones who have owned there homes and they just took a pay cut or got layed off and are at risk of losing there home, like me. Whet help Do we get?
So people who hae monew to buy a home,we know who they are. Get $8000.00 and then just sell it. typical Gov.
You have to be a first time home buyer, AND you can’t sell for 3 years, AND it has to be your main residence.
This is about getting the housing market back up and running, idiot.
Its always “WHAT DO I GET?” typical morons.
Three years is not very long and what if the house is foreclosed on the next year, Jackass.
What kind of financial situation do you think people are in today. It’s more of a help those who don’t want to help themselves.
Just want freebies from the government.
It’s people like you that are most likely cause of the problems.
I have never collected any government assistance ever in my life.
Just sick and tired of paying for jackasses like you.
Have a good day!
You’re the one who’s asking “What do I get?” Seems like you’re looking for some assistance….Jackass.
If you’re laid off (not layed off) then you’re not paying for anybody.
have a great day.
Can you use the $8000 tax credit if you have a conventional loan or FHA?
Unfortunately, what everyone here is talking about, the corruption, the greed, the mistakes, is never, ever going to go away. Regardless of parties and candidates or rich and poor, this is our country and that’s how it works. Those who can take will take and those who have will always take more. The rich will always feel threatened and the poor will always feel disenfranchised. We all feel like we are entitled to what everyone else has but not the other way around. If one person gets $8,000 and another gets $8,001, you know someone will feel that’s its unfair but whats really unfair is that every single one of us over the age of 18 is to blame for this collapse and no one wants to admit fault. Only when people come to terms with the fact that our way of life is wrong will there ever be a chance for true and positive change. I’m certainly not suggesting socialism, but a society where people feel that we shouldn’t care for each other is just evil.
I thought this web site was to help answer questions, not bash people for the government trying to get the economy moving again. If you have never use the government for assistance good for you, but we all pay taxes. Get over it.
If I lived in a financed mobile home in a trailer court and paid lot rent and in March 09 sold the m.h. and purchased a house do I qualify for the $8000 tax credit
The $8000 is real my husband and I have already received ours and spent it! We got our normal refund and on top of that an extra $8000 cash! Our home closed on Jan 2,2009 so we just made it!
I’ve heard that you can get the $8000 to use as the down payment, but how would i go about getting before i purchase the house? that’s how i plan on getting the house
My husband and I did not filled our taxes jointly. Does this mean that we will not recieve 8000 but instead 4000?
If I get the 2% loan from BOFA fot a down payment,can I still get the 8000.00 dollars tax credit ?
I am a first time homebuyer. I moved into my home on July 27th 2007. Do I qualify for any of the tax credits? If so, which one? If not please explain why? Thanks.
What form do I use to file for 8,000 stilmus for purchase a home in 2009?
File 1040x & 5405. If you used TurboTax it’s easy to amend. It asks you all the right questions to set it up. I’ve amended using it before and it was great. Just got my paperwork ready to file when escrow closes in 2 weeks. Good luck!
I heard that you can get the money before you buy the property is this true ?
http://www.usnews.com/blogs/the-home-front/2009/05/29/the-8000-first-time-home-buyer-tax-credit-program-expands-5-things-to-know.html
“Families will now be able to apply their anticipated tax credit toward their home purchase right away,” Donovan said in a news release. “What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
My house construction will be starting this month.Due to weather or other problems if the closing is not done before Nov 30th, does it mean i get no credit?
Again, if I take help from my parents to help me with the finance that I can repay with out interest in a few years and wish to add one of them as a co buyer what happens to the credit even if they deliver the home in november?
Any chance of this Dec 1 as deadline to be extended?
Pachu
Purchased house on May 8th 2009. Submitted amended 2008 return on May 15th. Still no $8000. I called to check if everything is ok. Yes everything is fine. Yes we have everything we need. 14 weeks and counting. Don’t hold your breath.
Recieved letter dated 8/31 saying everything ok. Still counting and counting, counting and counting.
Here’s a question. My fiance bought a house and then in month later we are getting married. I’m not on the mortagage because of poor decisions I made when I was younger with my credit. Both of us have never owned a home before and he’ll be claiming head of household for our family for taxes.
Will he be considered “single” for the income limits or married?
We bought house in July 2009 & because of job relocation selling it in Nov 2009 . So are we eligible to take $8000 credit
I owned a manufactured home in a trailer park. I never owned the land. I sold the mobile home in Nov. 2008 and purchased a stick build on its own land in February 2009. Do I qualify for the home owners tax credit of $8000.00
I bought my house May 8th and submitted for the first time home buyers credit on my 2008 taxes on May 12th. I still haven’t recieved any money. My file went through exams and they approved the return on Aug 31st. It has been a total of 180 days. Here is my message to the President: Mr. Obama, The reason this economy isn’t doing better is because the people responsible for handling your incentives are slackers or just plain stupid. DO NOT COUNT ON THIS MONEY FOR ANYTHING IMPORTANT!