Comments on: How Does The $8000 First Time Home Buyer Tax Credit Work For Someone Who Didn’t Owe Anything On Taxes?

By: starrfyr

starrfyr — Sun, 07 Feb 2010 03:46:43 +0000

As long as you meet all the qualifications, you will receive a check for 10% of the purchase price up to $8000. Go to the IRS website and search for the “First Time Home buyers tax credit” articles. They lay out the qualifications regarding income, etc. And yes, if you always get a refund, the $8000 (or 10%, whichever is smaller) will be added to your refund, or if you close soon, you can amend your 2008 taxes and get it before you file for your 2009 taxes. If you prefer, you can wait until you file taxes next year, and claim the credit with those taxes. You must close before Dec 1, 2009 and the money is yours to keep, you don’t have to pay it back. And you can do whatever you want with it.
The only time you would have to pay it back is if you sell or cease to use the property as your primary residence before 36 months have passed.

By: Laura S

Laura S — Sun, 07 Feb 2010 03:46:43 +0000

I’m also a first-time home-buyer and asked the same question to the guy running the class for first-timers in my area.
Basically, if you don’t owe in taxes, then the $8,000 tax credit will be paid to you over and above what you would normally receive for a refund. So if after doing your federal income taxes for 2009 you would normally receive a $1,500 refund, you would get the 8,000 on top of that for a total of $9,500!
If you owed $1,500 in taxes, then that liability would be subtracted from your $8,000 tax credit with a result of you getting a refund for $6,500.
There will be a seperate tax form to fill out in order to receive the $8,000, so make sure you keep an eye out for it for when it’s time for you or your accountant to file for 2009.

By: anonymou…

anonymou… — Sun, 07 Feb 2010 03:46:43 +0000

We’re in the process of buying our first home and the way it was explained to us was you DO NOT get the full $8000 back at once. You will recieve a $1000 tax credit every year for 8 years, if you usually get a refund you would get your refund plus an extra $1000. This being said you must live in the same house for at least 8 years, unless there are unforeseen circumstances like leaving for the military etc. If you do not stay at the same house for the whole term you may be responsible for paying that money back. Good luck!