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Sorry, I misunderstood that you were entitled to a $1k refund on your Federal taxes. You are correct - you would receive $16,000.
I should give you some neg. rep for scarying the s..t out of me,
I thought you were saying people would only get money if they owed taxes to the government and they would only get that amount.
Holy crap, that had me scared, because I always get money back.
What happens (if this is just a simple tax credit) is lets say they take 8000.00 out of your pay in a year, but your actual tax liability at end of year is only 7000.00, you will get all 8000.00 back, whereas now you only get the 1000.00 you overpaid. BUT, you will not get "extra" money.
This is different than the credit currently in place. I did get the "extra" $7500.00 as a refund even though I didnt owe nearly that much in taxes for 2008. BUT, I have to pay it back over 15 years.
No it doesn't. This is a non-refundable tax credit. If you paid $5000 in taxes last year you will get that back. That's it. It isn't a $15,000 gift from the government. It credits the amount you paid last year so you now get back what you have paid out nothing more.
Is there an income cap on this? So anyone making over $xyz is not entitled to this credit (as has been the case with most of these refunds, credits, etc)? Anyone know?
Is there an income cap on this? So anyone making over $xyz is not entitled to this credit (as has been the case with most of these refunds, credits, etc)? Anyone know?
No it doesn't. This is a non-refundable tax credit. If you paid $5000 in taxes last year you will get that back. That's it. It isn't a $15,000 gift from the government. It credits the amount you paid last year so you now get back what you have paid out nothing more.
Beats an earned income credit, or being paid not to work, but it's a pretty good disincentive for contributing to 401Ks. Seems like the ideal thing to do is pare down my retirement contributions to get my tax liability to 7500 a year.
Tough for a first-time homebuyer to accurately estimate the tax deductions of owning a home, and either reduce tax withholdings and IRA contributions, or potentially leave money on the table at tax time!
[quote=ji603;7350693]Beats an earned income credit, or being paid not to work, but it's a pretty good disincentive for contributing to 401Ks. Seems like the ideal thing to do is pare down my retirement contributions to get my tax liability to 7500 a year.
Tough for a first-time homebuyer to accurately estimate the tax deductions of owning a home, and either reduce tax withholdings and IRA contributions, or potentially leave money on the table at tax time
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