The $8000 Home-Buyer Tax Credit
Recently, I have been getting a lot of phone calls and e-mails asking me questions about the $8000 home-buyer tax credit so I wanted to answer the most asked questions and make it as simple as possible.
So who gets the credit? First-time home buyers or someone who hasn't owned a home in three years.
How much is the credit? $8000 or 10% of the home's value, whichever is less.
What do you have to do to get it? Claim it on your 2008-2009 taxes.
It's totally refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of withholding they paid during the year plus anything....
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Is this tax credit added on top of your usual refund/amount owed
Is this tax credit added on top of your usual refund/amount owed?
Or is it in place of?
ex:
I owe 7000 in taxes for the year. I withheld 8000, usually i would get a 1000 refund. Would i now get 9000 (my refund plus the 8k) or just 8000 ?
thanks,
Cnn posted an article saying that you would only get 8000, but that would punish those who had too much withheld from their taxes, thus incenting you (even though its always a good idea) to not have ANYTHING extra withheld above your tax responsibility because you are basically going to lose any refund amount over what you owed.