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so as of right now...we dont know the date when its going to start from...damn..my home closing on April 3rd week - May 1st week; I think i will get $7500 pay back only..
Based on what you guys are saying...
What would be the best and worst case scenerario for a person that is buying a $150,000 house?
How can that person get the $15000 and how would they get $0
Sorry, I misunderstood that you were entitled to a $1k refund on your Federal taxes. You are correct - you would receive $16,000.
Not true-unless the bill gets amended. It's not a credit in the form of a refund. I can't imagine anyone being so generous to start mailing out checks around $15K.
Some people seem to be saying that if I buy a $150,000 I might not get all the $15,000.
That's what I'm trying to figure out (even though I don't believe it)
That's true. From what I've read it's based upon your tax amount owed. It helps work your taxable income down to 0 in the form of credits. I also read that it's credited after your other credits such as earned income, child, etc. So it may not be as beneficial to those taxpayers who aren't in a high tax bracket to begin with.
The best thing to do is wait till it's enacted and see what's been finalized.
From what I've read it's based upon your tax amount owed. It helps work your taxable income down to 0 in the form of credits. I also read that it's credited after your other credits such as earned income, child, etc. So it may not be as beneficial to those taxpayers who aren't in a high tax bracket to begin with.
The best thing to do is wait till it's enacted and see what's been finalized.
Well, you're ALmost there...it doesn't work your TI down to zero but it COULD zero out your tax...if your tax from the tables is, say, $8,200 you would/could apply $7,500 against it so your TOTAL tax is $700...then you apply your withholding for your overpayment/balance due amount. If your total tax was $3,800, your "credit" would result in a zero tax (certainly not a "negative" tax tho). Then I believe you would still qualify for a tax break the next year...
Who can even guess what the final outcome will be? The original "loan" of $7500 with joint income capped at $150K does nothing for most home buyers in my area so not much stimulation here! But $15K off taxes over 2 years with no income cap just might do the trick!!
Some people seem to be saying that if I buy a $150,000 I might not get all the $15,000.
That's what I'm trying to figure out (even though I don't believe it)
Correct.
As others have stated, it depends on your "tax liability" situation. If you are in the "earned income tax" situation, you probably will not benefit from this 15K tax credit since you do not have any "tax liability"...even though those people still pay income SS and Medicare taxes.
You also have the option to spread the 15K credit over 2 years.
So if your tax liability is only 7K this year, just apply 7K credit to this years taxes.
For next year, if you are on a W2, change your W4 numbers to have your employer withhold even less taxes so you get more money back during the year.
In the end, worst case scenario would be to have a tax liability of zero, over 2 years and getting nothing out of the housing tax credit.
Than again, most people who have zero tax liability are in the earn income tax situation and Obama is already going to give them $500-1000 additional money in his part of the stimulus deal.
It's based on what your tax liability is throughout the year.
Anyone who has tax liability of $7500 a year in Fed taxes will be able to maximize this credit in two years.
Anyone who has a tax liability of $15,000 a year in Fed taxes will be able to maximize this credit in one year.
What you actually get back on refund depends on what you withheld throughout the year. If you withheld zero, no refund but also no tax bill either. If you withheld any money throughout the year, you would get that back.
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