Back in February, I posted an article regarding the First Time Home Owner’s Credit. It gave a pretty thorough breakdown of the program requirements.  While doing my daily browsing to stay abreast on various topics, I ran across an article that’ s alarming to me!  This money is available, but only for qualified individuals.  No, the government isn’t giving away any free money or money that you were entitled to that someone didn’t tell you about…….

First Time Home Buyers still have time to take advantage of this first time refundable Home Owner’s Credit.  You have until November 31, 2009 to complete the closing on your new home.  Of course there are some requirements, view here, but you may be able to receive up to an $8,000 refundable credit.

If you have already filed your 2008 tax return, you may amend your taxes to include this credit. It will be refunded to you or you can include this information on your 2009 Return and it will be refunded if eligible.

Per the IRS, the credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more ($80,000 if purchased after Dec. 31, 2008, and . 1, 2009).

The IRS also states that you must have bought the home after April 8th, 2008 but before December 1, 2009 to qualify for the credit.  If you have a home constructed, the first day you occupy the home is the date that is considered as your purchase date.  You can’t claim the credit before the sale and purchase is completed at closing.  Furthermore, you aren’t even eligible if you have owned a principal residence three years prior to this purchase.

J. Russell George, Treasury Inspector General for Tax Administration, questioned the eligibility of some 100,000 claims out of the 1.5 million who have sought to take advantage of the $8,000 tax credit economic stimulus package enacted last February. incorporated in the

He said claimants include those who could possibly be illegal immigrants and that 580 people seeking $4 million from the first-time home buyer credit were under the age of 18. The youngest taxpayers receiving the credit were 4 years old, his office said.

George said more than 19,000 people filed 2008 tax returns or amended returns claiming the credit for homes they had not yet purchased. Those claims amounted to $139 million and it was not clear that the IRS planned to go back to verify that those purchases actually took place, he said.

He said his office had identified another $500 million in claims, by some 74,000 taxpayers, where there were indications of prior home ownership.

Yes, times are hard.  The Recession is real, but there is still no reason to legally obtain funds that you are not entitled to receive.  You see, Taxpayers suffer in the long run because of your poor decisions.  You may get this money, but you are risking fines, penalties, imprisonment, and your credibility forever!! Congress is debating whether to extend this credit deadline date, because of these fraudulent act. This could affect the individuals that really do qualify!

IF IT SOUNDS TO GOOD TO BE TRUE, IT IS! Ask yourself these questions:

• Why are we the only area that’s receiving this money?
• Why haven’t I seen this claim advertised by legitimate news sources?
• Why would the government front me a large sum of money in advance without wanting present or future verification?

These were just a few questions that would appear to be logical to the average person!  Even if you do not think logically, you still have an OBLIGATION TO RESEARCH INFORMATION TO THE BEST OF YOUR ABILITY!!

When there is any doubt or you just need confirmation about anything IRS related, go to www.irs.gov to research.  If you don’t find the answer you are looking for, call a representative Toll Free @ 800-829-1040 anytime Monday through Friday from 7:00 a. m. to 10:00 p. m. Eastern Standard time.  You will be able to speak directly with a Representative that will be more than happy to answer your questions!

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Now, I know that a lot of individuals are wondering about the specifics of the First Time Home Buyer’s Refundable Credit for Tax Year 2009. This is the very first time the credit has been deemed refundable.  President Obama signed his first major bill on Tuesday, February 17, 2009. This is just one of the many components of his Economic Stimulus Plan. Interested?……..Okay, this is where it get’s interesting. You are allowed to claim the up to 10% of the home’s value that you are purchasing or the $8,000 credit. Of course, you are allowed to use the one that is less,     ! Did you really think you would be able to use the one that was most beneficial? Not in this time! ! It’s just not possible. The economy really would not be able to withstand it!

Now, let’s back up a minute. Let’s make sure you even qualify for this credit.

• You CANNOT HAVE owned a home within the last 3 years.
• You MUST purchase the home on or after January 1, 2009, but before November 30, 2009.
• Single Home Buyer’s Income CANNOT exceed $75,000.
• Married Couple’s Income CANNOT exceed $150,000.
• OH, be prepared to live in it for a minimum of 3 years, because you WILL have to pay the money back you were refunded if you move before 3 years.
  

Now, if you happen to exceed income limits single or married while trying to purchase a home, you may still receive a partial credit! Again, this credit is refundable! So, that means that you will get your credit amount in addition to your regular refund. Now, if you have a tax liability and owe taxes, your credit amount will go towards your tax liability and you will be refunded the remainder. So, you won’t have to write any additional checks out to the IRS!!!

This is very helpful for those of you that CAN meet credit requirements or even come up with the down payment to get in the home. The reality is that soooo many jobs have been lost, late payments have been made, retirement savings have slowly been diminishing, on and on and on that it’s nearly impossible for most Americans to qualify or keep what they already have. It will take longer than November 2009 to reap a benefit of this credit. What about some money being pushed into Immediate Credit Reform or something? or How about introducing this credit when it’s realistic for more Americans!

Feel free to leave questions about tax situations in discussions and I will assist you to the best of my knowledge or if you need examples. You can also login on the front page using your email address and I will discuss with you personally!

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