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Alexandra17
Keep It Positive
Member since 4/09 6262 total posts
Name:
Alexandra (ali)
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8k tax credit in cash?
Anyone do this yet for the tax credit? If so, any help would be great.
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Posted 8/20/09 7:49 PM  |
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SnickNNick
In our new house!!
Member since 8/08 2119 total posts
Name:
Nicole
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Re: 8k tax credit in cash?
We haven't, but we just got our check in the mail! Why would you need it in cash?
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| Posted 8/20/09 7:51 PM |
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Alexandra17
Keep It Positive
Member since 4/09 6262 total posts
Name:
Alexandra (ali)
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Re: 8k tax credit in cash?
Posted by SnickNNick
We haven't, but we just got our check in the mail! Why would you need it in cash?
I think I worded it wrong..we know about the 8k tax credit but when we went to Bank of America last night, the mortgage guy said he doesn't know of anyone who has used the tax credit to help in buying the house (down payment, closing, etc). How did you do it?
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| Posted 8/20/09 7:52 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: 8k tax credit in cash?
From what I understand you don't get it until AFTER the closing and for a while at that. So personally I would not "count" on it for using it as a down payment or for closing costs. Also some of the other credits don't appear until tax time, so it will really take a while to get those.
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| Posted 8/20/09 8:10 PM |
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Janice
Sweet Jessie Quinn
Member since 5/05 27567 total posts
Name:
Janice
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Re: 8k tax credit in cash?
We filed for it after we closed. It wasn't used at all for home purchase.
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| Posted 8/20/09 8:41 PM |
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Cpt2007
A new love!
Member since 1/08 5946 total posts
Name:
Liz
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Re: 8k tax credit in cash?
Posted by Alexandra17
Posted by SnickNNick
We haven't, but we just got our check in the mail! Why would you need it in cash?
I think I worded it wrong..we know about the 8k tax credit but when we went to Bank of America last night, the mortgage guy said he doesn't know of anyone who has used the tax credit to help in buying the house (down payment, closing, etc). How did you do it?
you can't. it is a credit you receive AFTER you close. you can either file an amended return for TY 2008 and receive a check, or you can claim it when you do your 2009 taxes and receive it that way. But you can't get the credit or qualify for it until you have already purchased a home.
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| Posted 8/20/09 10:05 PM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: 8k tax credit in cash?
I believe that you can possibly get the credit to use towards closing costs but it is in the form of a 2nd loan that is repaid once you get the credit.
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| Posted 8/20/09 11:42 PM |
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Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
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Re: 8k tax credit in cash?
Posted by JandJ1224
I believe that you can possibly get the credit to use towards closing costs but it is in the form of a 2nd loan that is repaid once you get the credit.
yeah i think you are right - i think the way you have to do it is to take out a loan for the 8k (i think its a loan for part of your DP) and then you pay it off in full once you get the 8k credit........
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| Posted 8/21/09 9:05 AM |
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donegal419
St. Gerard, pray for us.
Member since 7/07 7650 total posts
Name:
K
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Re: 8k tax credit in cash?
we got it last year (and we have to pay it back!  those buying in 09 don't have to pay it back) but it came to us on our tax return, so we received $8000 more than we ordinarily would have.
i would think yours will be the same and you won't physically have the money to close on your home, it's more of a reimbursement.
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| Posted 8/21/09 1:37 PM |
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JennJay41
LIF Toddler
Member since 3/08 431 total posts
Name:
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Re: 8k tax credit in cash?
If this is the one for first time homebuyers, we did it last year when we bought a house. It was 7k last year, but you get it with your taxes. We put it in and you get it back when you get your tax money back. .I hope this helps.
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| Posted 8/21/09 5:24 PM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: 8k tax credit in cash?
I found this:
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.
Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 14 state agencies have announced tax credit assistance programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here .
I guess contact your accountant.
Message edited 8/21/2009 5:47:57 PM.
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| Posted 8/21/09 5:47 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: 8k tax credit in cash?
You can just tell your employer to take out less taxes for a while. Or not take out any taxes for a few weeks.
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| Posted 8/21/09 6:10 PM |
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