2015 Home Buyer Credit With FHA Mortgage Insurance Cut

282 comments

[2015 Update] President Obama provided a boost to low income homebuyers by cutting the mortgage insurance premium borrowers pay on Federal Housing Administration (FHA) loans.


This move comes at a time when the housing market is slowing and home buyers are struggling to get mortgages due to tight lending conditions. Further the primary mortgage securitization companies – Freddie Mac and Fannie Mae –  raised premiums to offset losses caused by defaults during the housing crash starting in 2008, meaning a lot of low and middle income Americans lost access to lower cost FHA loans.

Under the new plan FHA will cut fees to 0.85%of the loan balance (from the current 1.35%), saving the average first-time homebuyer about $850 of their annual mortgage payment.

30-Year Fixed, FHA Loans, VA Loans _____________

[Updated Nov 2011] While President Obama has not proposed a new 2012 homebuyer tax credit in his latest economic stimulus (The American Jobs Act), he has included a great new provision for existing homeowners. Basically home owners who meet certain criteria (still to be defined) can refinance to the ultra-low rates available in today’s market. Through the FHA and government owned entities, Fannie Mae and Freddie Mac, the refinance program will allow banks to ease credit and qualification standards and hence enable a larger number of Americans to get sub-4% rates. A one percent interest decrease can put more than $2,000 a year in an average family’s pocket.

I will provide a detailed update on the new qualification criteria as they become available and encourage you to subscribe (free) via RSS, Email, Facebook or Twitter to get notified of the latest updates.
______________

[Updated February 2011] The Federal Home Buyer Credit has now expired, with no further extensions currently proposed in Congress. But make sure you provide the right documentation if claiming this credit when filing your 2010 tax return in 2011. Some groups (see below) are still eligible for this credit until September 2011.

One of the most popular topics on this site, the many articles I have written on this credit are heavily commented on given the big money – up to $8,000 – on offer for home buyers. This credit has been extended 4 times already on increasingly favorable terms, dating back to the Bush presidency, and has helped thousands of families buying homes. While there has been some degree of fraud, this credit has been one of the most successful stimulus payments the Obama administration has implemented to stem the housing and financial crisis.


However. with home prices stabilizing in most markets it is highly unlikely the credit will be extended again into 2011, despite the pleas of many home buyers who just missed the cut-off (April 30th to qualify, Sep 30th to claim). Some groups like Armed forces members and certain state department employees are still eligible for the credit into 2011, but for most home buyers going forward the credit is gone for good. One credit that is still available though is the $1500 home energy efficiency credit which can lead to lower energy cost savings over the medium to longer term.

Another challenge around the home buyer credit has been claiming it. With the flood of claims and various other stimulus driven credits and tax breaks the IRS has been slow in processing this credit. 2-3 months is the average wait for most people. But you can save yourself some time by submitting the right documentation when you adjust your 2009 or file your 2010 tax returns (in 2011). Form 5405 is the official IRS form required to claim the credit and all eligible home buyers must also include with their tax return one of the following documents (better to include more than less documentation if you are unsure):

– A copy of the settlement statement showing all parties’ names and signatures if required by local law, property address, sales price, and date of purchase (before April 30th 2010 to be eligible for the credit). Normally, this is the properly executed Form HUD-1, Settlement Statement. For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy (from the county/city office) showing the owner’s name, property address and date of the certificate.

Existing Home Buyers who qualify for this credit must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. This can be done by providing Mortgage interest statements, Property tax records or Homeowner’s insurance records

If claiming the credit in your 2010 tax returns (filed in 2011), most of the leading tax software like Turbo Tax will have step by step guides on claiming the credit in your return. There are three options for claiming the credit on a qualifying 2010 purchase:

  • If a 2009 return has not yet been filed, claim it on Form 1040 for tax-year 2009. Though these returns cannot be filed electronically, taxpayers can still use IRS Free File to prepare their return. The returns must be printed out and sent to the IRS, along with all required documentation. The IRS urges taxpayers claiming refunds to choose direct deposit.
  • If a 2009 return has already been filed, claim it on an amended return using Form 1040X.
  • Whether or not a 2009 return has been filed, wait until next year and claim it on a 2010 Form 1040.

The IRS has release the following 7 reminders for tax payers claiming the home buyer credit in 2011:

  1. You must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed on the home on or before September 30, 2010.
  2. To be considered a first-time homebuyer, you and your spouse – if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
  3. To be considered a long-time resident homebuyer you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased.
  4. The maximum credit for a first-time homebuyer is $8,000, half that amount for married individuals filing separately. The maximum credit for a long-time resident homebuyer is $6,500. Married individuals filing separately are limited to $3,250.
  5. You must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. Therefore, if you claim the credit you will not be able to file electronically.
  6. New homebuyers must attach a copy of a properly executed settlement statement used to complete such purchase. Buyers of a newly constructed home, where a settlement statement is not available, must attach a copy of the dated certificate of occupancy. Mobile home purchasers who are unable to get a settlement statement must attach a copy of the retail sales contract.
  7. If you are a long-time resident claiming the credit, the IRS recommends that you also attach any documentation covering the five-consecutive-year period, including Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.

___________________________

[Update July 2010] Approved! First-time home buyers now have until Sept. 30 to close on their home purchases and qualify for the $8,000/$6500 tax credit under a newly approved extension bill. The closing deadline was originally June 30. To be eligible, buyers still need a contract that was in place by April 30.

The home buyer credit, extended and expanded over the last 3 years is set to expire at the end of this month with Congress still unable to approve the extension as part of HR 4213 (see previous update below). However, recently released data for May 2010 shows worrying trends of sharply declining sales of existing and new homes. Further, inventory data and foreclosure activity have not shown any signs of improvement. All this suggests the expiration of the home buyer credit may have more of an impact than people thought.

This news and voter pressure prompted House members to take more action with the stalling of the HR 4213 bill in Congress (due to other provisions in it). As such a new bill – H.R 5623 – was introduced and approved by the House (409-5) to extend the home buyer credit for new and existing home buyers.  The bill has now passed in the Senate without amendment by unanimous consent. President Obama has also signed the bill into law. Here is a summary of the bill:

H.R. 5623Homebuyers Assistance and Improvement Act of 2010. Among other items, this bill would extend the homebuyer tax credit of up to $8,000 for the purchase of a principal residence before October 1, 2010. The current benefits apply to cover buyers who enter into contracts before April 30 and close by June 30. This bill extends the closing date to September 30, 2010.

The bill would provide any home buyer who entered into a contract on a home by April 30, 2010, but has been unable to go to closing within the required 60 days, an additional 90 days to close and qualify for the credit. This provision is estimated to cost $140 million

The approval of this bill is great news for many home buyers who signed a purchase agreement/contract prior to April 30th but are having difficulty closing before June 30th. One thing to clarify –  this bill does not extend the deadline for home buyers to sign a contract for a home and hence qualify for the tax credit (still April 30th); rather it extends the deadline for closing the transaction, from June 30 to Sept.30.

The National Association of Realtors estimates that this new extension will help about 180,000 to 200,000 homebuyers who already signed purchase agreements and were likely to miss the June 30th deadline.

The IRS has also released more details on the approved extension and required documentation (detailed in previous updates below). To avoid refund delays, those who entered into a purchase contract on or before April 30, but closed after that date, should attach to their return a copy of the pages from the signed contract showing all parties’ names and signatures if required by local law, the property address, the purchase price, and the date of the contract.

Besides filling out Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, all eligible home buyers must also include with their tax return one of the following documents:

  • A copy of the settlement statement showing all parties’ names and signatures if required by local law, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
  • For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
  • For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy (from the county/city office) showing the owner’s name, property address and date of the certificate.
  • Existing Home Buyers who qualify for this credit must must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. This can be done by providing Mortgage interest statements, Property tax records or Homeowner’s insurance records

There are three options for claiming the credit on a qualifying 2010 purchase:

  • If a 2009 return has not yet been filed, claim it on Form 1040 for tax-year 2009. Though these returns cannot be filed electronically, taxpayers can still use IRS Free File to prepare their return. The returns must be printed out and sent to the IRS, along with all required documentation. The IRS urges taxpayers claiming refunds to choose direct deposit.
  • If a 2009 return has already been filed, claim it on an amended return using Form 1040X.
  • Whether or not a 2009 return has been filed, wait until next year and claim it on a 2010 Form 1040.

_____________________

[Updated – May-June 2010] Possible September 30th, 2010 Extension to Home Buyer Credit as Builders and Home Owners Struggle to Complete Home Transactions by the current June 30 2010 Tax Credit Deadline.

The U.S. Senate has approved a provision to H.R. 4213 (a jobs and tax bill) to extend incentives for first-time home buyers. The provision to extend the home buyer credit would give buyers an extra three months to close on their house. H.R. 4213  in it’s entirety still needs to be approved by the Senate (still under debate as of 6/28), before returning to the House for a final vote. Only when the bill is signed into law by the President, will the home buyer credit extension be official. Until then, home buyers must close by July 1st 2010 to qualify for the credit.

Construction crews are working around the clock to meet tight deadlines to finish houses by the end of June so purchasers can get a federal home buyer tax credit of as much as $8,000. Home buyers are similarly anxious to get settlement on an existing house or the keys to the new home before the credit expiry date. To qualify, home buyers had to sign a contract by April 30 (intention to buy) and must complete the transaction by July 1st (June 30 is the last eligible day). To complete a newly constructed home sale, builders in most of the U.S. are required to have a certificate of occupancy from local officials attesting the house is finished or at least conforms to building codes. Mortgage lenders usually require the document before closing on a loan.

Push to extend closing to September 30th 2010

With all the hoopla around claiming the credit and a strong push from various realtor groups,Senate Majority Leader Harry Reid has pushed through the senate a three-month deadline extension amid concern that a rush of buyers created too big of a backlog. New-home contracts rose 30 percent in March and 15 percent in April, the biggest two-month gain in records dating to 1963, according to the Commerce Department. About a third of the April signings were for homes under construction, and a quarter were for those that weren’t started. The National Association of Realtors asked members of Congress to consider extending the tax credit deadline to allow people more time to complete sales, said Lucien Salvant, head of public affairs for the Chicago-based trade group.

Two other Senators, D-Nev., and Sens. Johnny Isakson, R-Ga., and Chris Dodd, D-Conn, also supported an extension the to present home-buyer tax credit closing deadline to Sept. 30. The measure was offered as an amendment to H.R. 4213, a tax extension bill that is still under debate in the Senate. It is more than likely that the revised bill will be approved and this extension gets passed. I will continue to post updates and the revised IRS approved dates.

New-home sales in March and April were concentrated in houses costing less than $300,000, signaling a rise in first- time buyers seeking the tax credit. The maximum benefit of $8,000 is reserved for people who have never owned property, while current homeowners can qualify for as much as $6,500 (see qualification details in previous updates below).

“The bulk of the delays are coming from people doing short sales, but we’re also seeing people having problems closing on homes they’re having built,” said Salvant. Short sales are transactions in which a bank accepts less than the balance owed on a property.

One thing to clarify based on some reader questions: This amendment does not extend the deadline for home buyers to qualify for the tax credit; it extends the deadline for closing the transaction, from June 30 to Sept.30. Since these applications were already in the pipeline and figured into the program’s cost, the extension of the closing deadline should not incur any further government costs.

Other Home Buyer Credits still available like California Credit and 2011 Extension for Military home buyers.

In California, the federal tax benefit has been eclipsed by a $10,000 state tax credit for real estate purchased between May 1 and the end of the year. The credit applies to people who buy a new home and first-time home buyers who purchase either a new or existing property.  Florida and other hard hit states also have home buyer assistance programs.

Similarly, the home buyer credit has also been extended for members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the home buyer credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

I will continue to monitor this tax credit as part of HR 4213’s approval and will update with new information. I encourage you to subscribe (free) via Email or RSS to get the latest updates.

________________

[Update May 2010] Unfortunately it looks like the chances of a further extension to the home buyer tax credit are lessening by the day as stronger housing data and focus on reducing government debt and foreclosures emerges. Bloomberg reports that purchases of new homes in the U.S. surged 27% in March, the most in almost five decades as buyers rushed to qualify for the home buyer tax credit. The annual pace of 411,000 new home sales exceeded even the highest forecast of economists. Last month’s purchase rate followed a record-low of 324,000 in February. Home sales increased in all four U.S. regions last month, led by 44 percent jump in the South.

The median price of a new home in the U.S. increased 4.3 percent in March from a year earlier to $214,000. The jump in sales brought the number of new houses on the market down to 228,000, the fewest since March 1971. The supply of homes at the current sales rate dropped to 6.7 months’ worth, the lowest level since December 2006, from 8.6 months in February. A report yesterday from the National Association of Realtors showed sales of existing homes jumped to a 5.35 million rate in March, the first increase in four months. Lawrence Yun, the group’s chief economist, said the government’s homebuyer tax credit “has done its job,” bringing more buyers into the market and stabilizing prices.

The Obama administration originally extended the credit in November 2009 and expanded it to include existing home-owners. To claim the home buyer credit you must have a signed contract by the end of April 2010, with the transaction to be completed by June 30 (see all the qualification details and claiming criteria in the updates below). You can submit an amended tax return with Form 5045 to claim the home buyer credit or file for it in your 2010 tax return.

While the home buyer credit is likely to lapse, there are some exceptions for certain groups who can claim the credit into 2011. For example Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the home buyer credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

I will continue to monitor this tax credit for any further updates and encourage you to subscribe (free) via Email or RSS to get the latest news along with the New Tax Breaks in the American Jobs and Closing Tax Loopholes Act of 2010 plus all the other stimulus payments in 2010 and 2011.

___________________________

[Mar 2010] With the deadline looming for the home buyer credit (see details below), many readers have asked if there is any update on a further extension of this popular tax credit. Recent housing data suggests that the housing market is still struggling with pending home sales dropping nearly 8 percent. The drop in pending (contract) home sales and unexpected declines in purchases of new and existing homes last month, adds to evidence the housing market, at the center of the worst recession since the 1930s, is still struggling to rebound. Further, the government has been forced to roll out new measures to help struggling homeowners facing foreclosure. So the question a number of realtors, housing industry members and would be home buyers are asking is that will the home buyer credit be extended again past summer?

Undoubtedly there is significant negative sentiment towards the home buyer credit, particularly from those home buyers who could not take advantage of previous versions with lower income limits; and from most conservative groups and fiscally focused politicians who want the home buyer tax credit to expire as planned. However, in addition to allaying the weakness in the housing market, extending the home buyer credit again could be a smart political move in an election year. Lawmakers, now more than ever, are looking for any successful mortgage and/or housing-related program that they can stand behind. Besides the Fed’s mortgage-backed securities (MBS) purchase program, the home buyer tax credit has been touted by some as an extraordinary success. Such, “success” can provide the necessary political cover to advocate extending the credit, especially since the simple fact is that it if doesn’t work — that is, if it’s not being utilized — that it costs nothing. Deficit issues and the concept of whether we’re rewarding those who might have bought anyway will take a back seat. Keeping home sales going promotes home price stability, and that makes for less-grumpy voters as election time rolls around.

As of yet, there are only a few official rumblings about further extending the home buyer credit for new and existing home buyers. However, if the housing market and political climate continues to deteriorate I would not be surprised to see the credit extended again (albeit with slightly different conditions) to at least the end of the year.

One thing is for sure, over the next couple of months, especially with health care reform passing and taking a back seat, we are going to hear a great deal about the first time home buyer tax credit extension. It will be very interesting to see what Washington has to say about the current state of the housing market and the possibility of an extension to this tax credit.

————-

[Update Jan 2010] Following Congress approval, President Obama has signed off on the bill approving an extension of the $8,000 new home buyer tax credit until April 30th 2010. Also, the new provisions in the extension are NOT retroactive. Here is a summary of the new and updated provisions and their impact on you if you have or are planning to buy a house. New IRS forms and claiming instructions are also provided.

Qualification Period : First-time home buyers who bought after January 1, 2009 and before April 30th 2010 (with closing to take place by or on June 30, 2010), would get the $8,000 home buyer tax credit. This means you need to have purchased on or before April 30, 2010. However, in cases where a binding sales contract is signed on or by April 30, 2010, a home purchase completed (closing, final inspection etc) by June 30, 2010 will qualify. Make sure you attach a copy of the pages from the signed binding contract to make a purchase showing all parties’ names and signatures, the property address, the purchase price and the date of the contract.

– For the purposes of claiming the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. If you and your spouse claim the credit on a joint return (both of you must meet the income and past ownership criteria to qualify), each spouse is treated as having been allowed half of the credit for purposes of repaying the credit. So the total amount claimable is still only $8000.

Income qualification limits: The home buyers’ credit would be available to individuals with a modified adjusted gross income (MAGI) of up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the original rules. The higher income limits are only for homes purchased after Nov. 6, 2009. That is, the existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009. Those with incomes higher than the above limits do not qualify for any part of the tax credit.

*NEW* Current Homeowners looking for a replacement primary residence could also qualify for a $6,500 (up to $3,250 for a married individual filing separately) under the new “long-time resident” provision. They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. This new provision also only applies to homes purchased after Nov. 6th 2009. The IRS has stepped up compliance checks involving the home buyer credit for those with past homes and they must provide a mortgage Interest Statement, Property tax records or Homeowner’s insurance records, to prove compliance with past residency criteria.

Claiming the new home buyer credit: For qualifying purchases, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. A new version of Form 5405, First-Time Home buyer Credit, is now available on the IRS website. Taxpayers claiming the credit on their 2009 returns, will not be able to file electronically because of the added documentation requirements, but instead will need to file a paper return by using the new version of Form 5405. A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.

In addition to filling out a Form 5405, all eligible home buyers must include with their 2009 tax returns one of the following documents in order to receive the credit:

 

  • A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
  • For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
  • For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.The IRS expects to start processing 2009 tax returnsclaiming the home buyer credit in mid-February after it completes the updating and testing of systems to meet the law’s new requirements and to deter fraud related to the home buyer credit. Normally, it takes about four to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached. For those homebuyers filing early, the IRS expects the first refunds based on the homebuyer credit will be issued toward the end of March.

 

– The new $8000 credit can be used towards the down payment of a house bought in the credit qualifying period. You need to work with your lender to take advantage of this provision.

Tax Credit Exclusions: Homes that cost more than $800,000 aren’t eligible for the credit and you must be over 18 years old to claim the credit (dependents are not eligible to claim the credit either). Those who sell their new home or stop using it as their main residence within three years would have to repay the credit. You cannot claim the credit if acquired your home by gift or inheritance OR if you acquired your home from a related person

– If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $8,000 or 10% of the purchase price. Note: A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit (I would go with 50/50 as a reasonable method if one person is not eligible for the credit)

– The purchase date is how you decide which credit you are eligible for. Only homes purchased from Jan 1 2009 to April 1st 2010 are eligible for the fully refundable $8000 credit. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.

Foreign or Overseas Homes: You are considered a first time home buyer when buying an American residence, even if you owned principal residence outside of the United States within the previous three years. Non-resident alien’s cannot claim the credit.

– Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

 

For more on all the 2009 tax credits and criteria see: 2009 Federal Income Tax Guide Features All The Stimulus Recovery Tax Break Details; Which Can Help People Save When Filing Returns in 2010

____________

[Previous Update] Senate votes 98-0 to extend the $8,000 first-time/new home buyer tax credit until April 30, 2010. House to vote by the end of the week, with President to sign into law before Thanksgiving.

A number of people are wondering if the $8000 new home buyer credit (detailed in the updates below) expiring on November 30th will be extended to all home buyers, and potentially increased to $15,000. This is particularly the case if they are considering a purchase in the next few months because they must go through the whole home buying process and close before the end date. Well, Bloomberg news reports that according to Senator Bill Nelson of Florida (D), Senate leaders are negotiating to extend and gradually reduce the $8,000 first home buyer tax credit through 2010. Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus of Montana, both Democrats are seeking to add the home buyers extension to legislation extending unemployment benefits for 14 weeks.

 

The Senate bill to extend the credit contains the following new provisions:

– First-time home buyers who close before April 1 would get the full $8,000, and the credit’s value would be reduced by $2,000 in each successive quarter until expiring at the end of the year.

– The plan would extend the credit, due to expire Nov. 30, to home purchases under contract by April 30, 2010, with borrowers allowed another 60 days to close the sale, according to a person familiar with the details of the agreement.

Current Homeowners looking for a new home could also qualify for a $6,500 credit if they have lived in their existing primary residence for at least five years

– The home buyers’ credit would be available to individuals earning up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the current law.

– Tax Credit Exclusions: Homes that cost more than $800,000 aren’t eligible for the credit and you must be over 18 years old to claim the credit. Those who sell their new home or stop using it as their main residence within three years would have to repay the credit.

More than 1.2 million borrowers through Oct. 9 have claimed almost $8.5 billion of the $13.6 billion set aside for “first-time” home buyer tax credits this year. The program is aimed at easing the worst housing slump since the Great Depression and has been credited with boosting the economy and stock markets over summer. See this update and details below for the various bills under consideration to extend this tax credit.

Lawmakers are under pressure from real estate agents, mortgage brokers and home builders to extend the $8,000 credit before it expires Nov. 30. However, they are also facing pressure from governance groups and recent IRS reports claiming widespread fraud around claims for this lucrative credit. The IRS has identified 73,799 claims totaling almost $504 million that may not be from first-time home buyers. They also found that 582 taxpayers under 18 years old and ineligible to buy a home claimed almost $4 million in credits.

______

[Updated October 2009] A number of people are wondering if the $8000 new home buyer credit (detailed below) expiring on December 1st will be extended to all home buyers, and potentially increased to $15,000. This is particularly the case if they are considering a purchase in the next few months because they must go through the whole home buying process and close before the end date. Further the stabilization of the housing market due to the 2008 credit and unprecedented success of the extended cash for clunkers program has shown that stimulus payments that directly help consumers seem to have the most impact. This means that the extension of the $8,000 tax credit for first-time buyers will be a hotly debated topic in Washington over the next few months. There is a reasonable chance (particularly if the housing market falters again) that the credit will get a second life and be extended for another six to 12 months, taking pressure off buyers, realty agents and settlement companies.

An extension of the $8,000 U.S. homebuyer tax credit is gaining support in the Senate as bill sponsor John Isakson said he is rallying lawmakers to continue a program that helped boost home sales by more than 1 million. “I’m working the floor now to make everyone aware that the $8,000 credit sunsets” Isakson, a Georgia Republican. His legislation would extend the program through the end of 2010, almost double the credit to $15,000 and remove restrictions that prohibit individuals who already own homes or earn $75,000 – $150,000 for couples – from getting the tax break. The bill, first introduced in June 2009, failed in a 47-50 Senate vote in August.

Even President Obama is reviewing an extension of the bill with White House spokesman Robert Gibbs telling reporters today that President’s economic team is looking at the tax credit and “evaluating the impact” on new home sales. “Through that evaluation we’ll come to something to give the president a recommendation,” Gibbs said.

As reported in the Washington post the two biggest housing trade groups – the 1.2 million-member National Association of Realtors and the National Association of Home Builders – are mounting unusually intense lobbying campaigns to make the case for extending the credit, and maybe even expanding it (to $15,000 per the original bill). The effort is targeted first at the districts of members of the two tax-writing bodies, the House Ways and Means and Senate Finance committees, but is expected to cover most other members of Congress as well, according to officials of the two groups. Delegations of home builders and realty brokers already have begun descending on district offices, delivering what Jerry Howard, president and chief executive of the builders association, calls “the hard economic facts.” They are the numbers of houses sold in each congressman’s district that are attributable to the tax credit; the economic ripple effects on local businesses, manufacturers and service industries; the number of new jobs and income generated; plus the additional tax revenue that all this activity will help produce for local governments.

On a national basis, according to economists at the National Association of Realtors, anywhere from 300,000 to 350,000 additional sales of houses will be stimulated this year by the credit. Each home sale generates about $63,000 in downstream “ripple effects” elsewhere in the economy, they say. That includes sales of furnishings, appliances, lawn mowers, landscaping and renovation materials, plus moving expenses. If you accept the numbers – and some analysts consider them a stretch – this means the housing credit provides a powerful, immediate stimulus bang for the buck. Failure to extend what may be one of the most effective pieces of the Obama administration’s 2009 stimulus legislation would cost jobs, economic growth and tax revenues, the housing groups argue.

But can any of this happen before the December 1st deadline? The key complicating factor here is Congress’s heavy load of higher-profile, pressing issues (like health-care reform) that will get attention before anything else in September and October. On top of that, a

tax-credit extension would cost billions in lost revenue – a big negative when the federal budget deficit is already wallowing in a record amount of red ink. In the end, however, given the political economics of the housing credit, the odds favor some sort of extension, probably later rather than sooner. But don’t bank on it and if you are ready to purchase a home then do so sooner rather than later

———–

[Updated June 2009] First-time home buyers can now use the $8,000 first home federal tax credit (detailed in previous update below) to help cover down payment and other upfront costs if they are taking out a loan backed by the Federal Housing Administration. (see FHA loan vs Conventional Loan differences). The $8,000 tax credit was made available months ago as part of the Obama administration’s stimulus package in an effort to motivate would-be buyers and jump-start the housing market. But home buyers cannot claim the tax credit until they close on their homes, and then they must wait for weeks, possibly months, after filing their tax returns to receive the money.

To help buyers who need the cash upfront, FHA is allowing private lenders, state housing agencies and some nonprofit groups to offer loans secured by the tax credit. The Department of Housing and Urban Development, which includes FHA, estimates that this tax credit advance will enable tens of thousands of families to buy homes. Under HUD’s plan, buyers cannot use the tax credit advance to pay the 3.5 percent down payment FHA mortgages require if they get the advance from a private lender. They can use it to add to that down payment or help defray closing costs.

[Updated May 14 2009] The IRS has now issued an updated Form 5405 which rules on a number of questions raised around the 2009 ($8000) and 2008 ($7500) home buyer tax credits. Here are some of the key IRS Rulings and other answers applicable to the the 200+ questions I received on this credit:

———–

[Update Feb 7th 2009] I received a lot of comments on an earlier article discussing details of the $800/$400 tax rebate under the economic recovery stimulus package. This is not surprising given the adverse economic climate and the large number of beneficiaries of the rebate. Another wide ranging item in the Obama administration’s 2009 stimulus package, that has garnered as many questions and interest in the media, is the proposed $15,000 first-time home buyer (owner) tax credit. This proposal aims to double the existing $7,500 first time home buyer credit in addition to making it available to all and removing the obligation to pay it back in subsequent tax years.

Firstly, here is an outline of the current home owner credit and income thresholds:

– The Credit can be claimed in this year’s tax return by filing an amendment using Form 5405. Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

– The new $8000 credit can be used towards the down payment of a house bought in the credit qualifying period. You need to work with your lender to take advantage of this provision.

– Unfortunately you still have to pay back the existing $7,500 credit (for homes bought between April 8, 2008, and before December 31, 2008). Unlike the $8,000 credit passed recently, the existing credit was not made retroactive. You generally must repay the credit over a 15-year period in 15 equal installments, starting in 2010

– To be eligible for the home buyer credit, your modified adjusted gross income (MAGI) must be less than $95,000 or $170,000 (if married filing jointly) for the relevant tax year. The phase-out of the credit begins when your MAGI exceeds $75,000 or $150,000 (married filing jointly), meaning the amount of credit received decreases after these limits.

– You cannot claim the credit if acquired your home by gift or inheritance OR if you acquired your home from a related person

 

If you and your spouse claim the credit on a joint return, each spouse is treated as having been allowed half of the credit for purposes of repaying the credit. So the total amount claimable is still $8000.

– [Recent Update] If you are married joint filers, both partners must meet the first-time home buyer criteria. This is to prevent double dipping, but is biased against married couples since single filers also get the $8000 credit. So if you are planning to get married this year to someone who has owned a home – you may want to buy a home first and get married in 2010.

– If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $7,500 ($8,000 if you purchased your home in 2009) or 10% of the purchase price. Note: A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit (I would go with 50/50 as a reasonable method if one person is not eligible for the credit)

– The purchase date is how you decide which credit you are eligible for. Only homes purchase from Jan 1 2009 to Dec 1 2009 are eligible for the fully refundable $8000 credit. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.

__________

[Update Feb 18 2009] President Obama has now signed into law the $787 billion economic-recovery package. Unfortunately certain tax breaks, including the homer buyer tax credit, were scaled back to $8,000 (from the proposed $15,000) to get sufficient support for the stimulus bill’s approval. This is $500 more than the current home buyer tax credit (outlined below), but will only be available for qualifying home purchases this year between January 1, 2009 and December 1, 2009. Buyers who bought houses last year are still covered under the existing $7,500 home owner credit.

The Senate’s proposal to make this credit available to anyone regardless of income was also dropped and like the original $7,500 home owner tax will phase out for single taxpayers with adjusted gross incomes that exceed $75,000 (or $150,000 for married couples filing jointly). Further, if you sell the home within three years, you’ll forfeit the credit (or have to pay it back it you already claimed it).

However, the final stimulus plan did leave in the key provision that would eliminate the repayment requirement for the tax credit for first-time home buyers.This means that the home buyer tax break is a true tax credit and not a deduction, so will be an actual $8000 reduction on your next tax bill. If you don’t owe that much and purchased a house in the qualifying period, you get a check back from the IRS.

FAQs on the New and Existing Home Buyer Tax Credit

I have received a lot of questions and over 70 comments on this post about the 2009 first-time home buyer tax credit. There are still details to be worked out and rulings to be made by the IRS, but here are some of the common questions and my answers.

Q: Will home buyers who made purchases last year between April 9 and Dec. 31, 2008 be eligible for the new credit? Or is the old $7,500 credit, which currently needs to be repaid, going to also be made exempt from repayment?

Answer: No. They will continue to be covered by the original $7,500 tax credit enacted last year for first-time home buyers. They still have to repay this amount based on the updated form 5405 guidelines.

Q: Can I claim the $8000 home buyer tax credit in my 2008 returns?

A: Yes. You can include it in your 2008 returns via form 5405. If you have already filed your 2008 taxes, you can file an amendment or adjust your paycheck withholding for the credit amount so that your take home pay for the rest of the 2009 is higher (For example, $8000 over 8 months, is an extra $1000 in your monthly paycheck). Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

Q: If we bought in July of 2008, but have not used the credit, can we use the new proposed credit? If not, can I claim the difference between the old credit and new credit?

A: No. The current $8,000 credit is only for homes purchased this year. You can only claim the old $7,500 credit. However if you bought your house in January or February of 2009 and had already filed your returns under the old credit, you would eligible to file an amendment for claiming the additional $500 under the new credit.

Q: I am interested to know if the credit will be available to those putting down 3.5% as per FHA loans or if a 5% down payment is still required ?

A: No concrete word on the down payment requirement, but since the Senate proposal for a 15K housing credit was dropped I assume their 5% requirement was also dropped and that the current 3.5% FHA limit would stay in place. Also, remember the FHA loan has certain other criteria to meet which all borrowers may not qualify for. If you do get a loan through your bank or broker most likely you will need a 10 to 20% down payment in any case.

Q: Now that the bill is finalized. If I co-buy a house with someone who is not a first time home buyer. Can I claim the whole credit?

A: Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately. If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $7,500 ($8,000 if you purchased your home in 2009) or 10% of the purchase price. Note: A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit (I would go with 50/50 as a reasonable method if one person is not eligible for the credit)

See the comments below for more lots more question and answers.

The current home buyer credit (enacted last year) is equal to 10% of a properties purchase price up to $7,500, or $3,750.for a single filer. It works by reducing the 2009 tax liability OR as a credit to those who don’t owe sufficient taxes. A “first-time home buyer” is a person or couple who had no ownership interest in a principal residence in the United States during the three years ended on the purchase date of the residence for which the credit is claimed. Thus, someone who formerly owned a home, then rented for several years, could qualify. The purchase must be on or after April 9, 2008, and before July 1, 2009.

Although the current home buyer credit is termed a refundable tax credit, it is essentially an interest-free loan that must be repaid in equal amounts over 15 years, starting the year after the credit is claimed. The credit is available to joint filers with modified adjusted gross income below $150,000 and phases out once income exceeds $170,000. For single filers, the numbers are $75,000 and $95,000.

The Obama administration felt that the current home owner tax credit was not sufficient to revive the ailing housing market and as a result strongly pushed for a doubling of it in the 2009 economic stimulus package.

Key aspects of the Increased Home Buyer Tax Credit:

  • The stimulus plan (called a bill while in Congress) currently has 2 versions – The House version (aligned with what President Obama really wants) and the recently approved Senate version. The House bill did not change the tax credit amount, but added conditions that it would no longer require repayment. The Senate version of the home buyer tax credit raises the amount to $15,000, but you can only receive the credit if you owe federal income taxes. The final bill that the president signs will most likely combine the higher home buyer tax credit amount with minimal no repayment required. [I will update when this is finalized]
  • If you have already used the current $7,500 home buyer tax credit, you cannot claim the $15,000 credit as well. The tax credit cannot be used to buy a second home either.
  • Under the $15,000 Senate version of the home buyer tax credit provision, there are no income limits, unlike the current home owner tax credit which has a $150,000 income limit. Those who purchased a home in 2009 can claim the credit on their 2008 taxes (assuming the bill is approved in time).
  • Home buyers would have two years to claim the tax credit, so buyers could claim a $7,500 credit in 2009 and a $7,500 credit in 2010. Because the Senate’s version of the home buyer tax credit is paid against taxes owed, tax payers will benefit more than those with low incomes (who have a lower tax liability). Put another way, to get the full benefit of the home buyer tax credit, you would have to have tax liabilities of more than $15,000 (over 2 years).
  • A 5% down payment (as opposed to the current 3.5% FHA limit) would be required to get the $15,000 tax credit.
  • Even though the tax credit does not require repayment, buyers will have to pay it back if they sell the house less than two years after they buy it. This is to prevent investors and “flippers” from benefiting from this tax credit
  • The new tax credit would take effect when the economic stimulus bill is signed by the president into law, and it would last for one year. It is expected that a final version of the stimulus package bill will be signed by the President on February 16th – President’s day.

[Update] See this article for an overview of the key tax breaks in the final economic stimulus package. Also, read this post for more on Obama’s $75 Billion Mortgage Modification Plan.

Related:

~ $1 Trillion Revised Bank Bailout & Housing Rescue Plan

~ Should I Refinance my Mortgage and Do I Qualify

~ A look at the Pros and Cons of Reverse Mortgages

~ Paying off your mortgage – what would you do with the spare cash?

~ Key Dates and Deadlines to Receive Economic Stimulus Working ($800/$400), Social ($250), Home ($8000), Vehicle Tax Credits and Payments

~ $300M Cash for Appliances Stimulus Rebate Program Covering Air Conditioners to Refrigerators to Washers

~ Taxes and Gains I Can Exclude When Selling My Home

Gina Blount July 10

Are there any exceptions to paying back the credit if you sell your home prior to the three years? For example, one of the home owners losing their job.

Brian May 24

I purchased a home in January 2009. This is my primary residence after having purchased my first home in March 2002. My CPA put me in for the $6500 tax credit, which I now believe I was eligible for the $8000 tax credit after having researched it a bit. Just last month I received a notice from the IRS telling me I owe them $6500 and over $500 in interest. How can this be? I use the new home as my primary residence and lived in my first home for almost seven years. Of course now the CPA is avoiding my calls and emails. What can I do? I also feel that according to the IRS website I should have been eligible for the $8000 credit. Please help!

Reply

andys2i May 27

Brian – Sorry to hear this story. Unfortunately, since you (through your CPA) claimed the first version of the home buyer credit, you are now required to pay it back. To claim the later credit pf $8500, which did not need to paid back, you need to meet the eligibility criteria in the post and then claim it on an amended return using Form 1040X.

I would still suggest that you work through a CPA – a different one – as the paperwork can get complicated.

I also posted an article with more information on this : http://www.savingtoinvest.com/2012/05/help-do-i-have-to-pay-back-my-first-time-home-buyer-credit.html

Young March 26

I purchased a home on March 2009, and credit for $6500 last year. But, I relocate to another state for a new job on Sept 2011, and sold my house on October, 2011. Should I return back IRS the credit money since I try the Turbotax, it doesn’t work on the return. Thank you.
Y

Michael March 7

I have a question if I am still eligable for the $8000 credit due to I purchased my home in July 2009. I did not apply for the credit due to I wanted to make sure I would not rent the home and have to pay back the money. As many other had to pay back.
This July will be the (3) three year deadline which makes me eligable to claim the credit but am concerned if the $8000 credit has expired or can I still apply???

Please clarify. Thank you

sharon October 25

My mom owned her own home, but cosigned for me to buy a home. Since then I have done a loan modification with mom as the co signor again…does she qualify for the long time resident credit?

Steven L Chandler September 24

I am a DOD contractor and working in Iraq since 2010 to present. I’m I eligible for this tax credit if I meet all other requirements?

andys2i September 24

Yes, military staff are eligible for the credit. But you better hurry as Credit expires by Sep 30th and you must meet the purchase/income requirements outlined in the article.

Crystal Smith September 16

I closed on my home on 6/8/2009 and I had a contract on the home from 4/29/2009. Can I claim the 6,500 tax buyer credit as I owned my other home for more than 10 years? Does that time line fit, with all the extentions they have made it hard to follow. Thank you, Crystal.

browne487 July 23

My mother purchased a home in 2010 and received the tax credit. Since then her health has deteriated. She can no longer take care of the home by herself and her only living relative lives over 85 miles away from her. She needs to be closer to that family for medical reasons. If she sells this house will she have to repay the credit due to health reasons. She is permanently disabled from these medical problems and lives on a fixed income from Social Security. She loves her home and doesn’t want to sell it but due to these medical conditions it is no longer safe for her to be this far away from her family. 1 will she have to repay this credit? 2 is there any type of relief or waiver for this type of an issue? I am sure this is not the first time this has come up.

Connie April 5

Hello,
I am a single mother of 3. I have been trying to buy a home because I can’t afford to pay the rent I have to pay to accomodate all of us. I was buying a home last year when 4 days before closeing on the home, the economy cause a cut back at my job. I was let go along with about 6 other people. Needless to say I lost the home. I am now in the process of buying a different home and was wondering is there any relief for someone like myself, to help me in the long run. I do see that if you are in the service or buy a home overseas that the help is still there. But for someone like me, ( one of the little people), who doesn’t have alot of money to do these things, (like pay the bills), and has done everything I could to make my finances better in a place where there are no good paying jobs..lol…wheres my break…not being sarcastic…just honest…thanks

Jon March 27

I purchased a home in April 2010 and received the $8k tax credit.

Of course, now I have to move do to a change in jobs and a change in my personal life. If I close on another home and purchase another home as I sell mycurrent home, would I still be able to keep the $8k credit? Or am I basically SOL and will have to pay back the $8k no matter what?

andys2i March 27

You would have to repay the credit, because one of the rules is that you must stay in the home for at least three years after you buy it. According to the IRS here are all the repayment criteria :

(IRS) You repay the full or part of the credit as an additional tax on your tax return when the home stops being your main home during the 36-month period following the date you purchased your home. This includes:

* You sold your main home to a related person or entity
* Your home is destroyed, condemned or disposed of under threat of condemnation and you do not purchase or rebuild a replacement home within two years.
* You converted the entire home to a rental or business property.
* You converted the home to a vacation or second home.
* You no longer live in the home for the greater number of nights in a year.
* You lost your home in a foreclosure. You must repay the credit only up to the amount of gain.

Andy9999 February 23

I have lived in my home for 10 years and refinanced believing I would get the $6500 credit. I have paperwork stating the purchase price, 5 years worth of property tax statements, and the HUD settlement agreement….all paperwork IRS specifies. My question is…do I get the credit even though my purchase was not for a NEW home but a refinance of an existing and thus a New loan.

rose February 24

Hi,

I believe it’s only for people who bought a house and not for those who refinanced.

Ray February 11

I have pulled all of my documentation together to file my 2010 TAXES and would like to claim the tax credit for long-time residents who purchased a new home in 2010. we moved for work from one state to another and purchased a new home 27 March 2010 sold our old home 14 May 2010. We purchased the first residence 5 July 2005 for cash and the new residence 27 March 2010 with a mortgage which constitutes 4 yrs and 9 mos. My question is this, does 4 years and 9 months constitute a 5 consecutive year period under the IRS Guidelines, and can I claim the tax credit?

nihir February 11

i purchased home in oct 7 how can i qualify for 8000.00 dollars please help me

Lisa February 8

I ‘m a first time home buyer and I entered into a contract in November 2010 and it fell out of escrow then I got another lender who kept my info in the same escow company and I finally closed in Jan 2011. Is there any possible Tax credit that I can claim or recieve? The loan is a FHA loan.

andys2i February 8

No, per my latest update with IRS rulings on claiming the credit, “You must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed on the home on or before September 30, 2010.”

CONFUSED February 4

I’M SO CONFUSED RIGHT NOW. I PURCHASED MY HOME IN 2007 DO I GET A TAX CREDIT FOR EXISTING HOMEBUYERS, AN IF SO HOW DO I GO ABOUT DOING THAT.

Darin January 28

We have our contract binding on 8/6/10 but we close our home on 9/24/10. Do we qualify for the first time home buyer credit since we close the deal on the (new program H.R. 5623) first time home buyer extending from July 1 to September 30?

Rosey February 5

No. Because you need to have the contract by April 30th. The extension is only for closing.

andys2i February 8

Rosey – Thanks for answering some of the question. I made an update to the article with some recent IRS tips on claiming the credit. Should help some of the readers.

Melissa Lopez January 20

I am so confused as to how this tax credit works. I had applied to build a home, I believe in 2009, then again in 2010. My paperwork with USDA took so long I didn’t close until Nov. 2010, but had sign contract months before. Should I still qualify for credit?

andys2i February 8

No, per my latest update with IRS rulings on claiming the credit, “You must have bought – or entered into a binding contract to buy – a principal residence located in the United States on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must have closed on the home on or before September 30, 2010.”

Brian Rogers January 13

I bought my house in April 2009. I filed for my $10,000 tax credit for buying a brand new house. I got the confirmation fax being recieved within 2 days after escrow opened. I waited for my 2009 taxes w-2 ect ect. went to file and I was told by Jackson Hewitt that I only get credit if I owe money. For example. when my file was complete, that if i owed $4000.00 in back tax, that I would only then recieve $3,333 toward the balance of $4,000.00… do I would only owe what the credit left over. IS THIS RIGHT?
I was in the military at the time I filed for 2009 taxes so I usually ave. getting 3-4k back anyway… I was thonking I would get a monster check only to find out that I would get anything I though I would. Can someone clarify if this is right or if someone there doesnt know what they were telling me and shorted me money… PLEASE HELP

Kate January 29

The first time homebuyer credits (if that is what you infact filed for) are refundable. Yes, if you file for the 8k and you owe 4k you will only receive the difference but if you do not owe the government any money, the first time home buyer credits are refundable which means that if you meet all the criteria for the credit, ie….income, cost of home, date of purchase and previous ownership stipulations, you should get that money with your returns. If they did not refund you the credit, I would have them take a look at your taxes again. I am not a tax professional but the wife of a marine who purchased a home and recieved the FULL credit as we did not owe the government any money. Hope this helps.

John Q January 4

I bought my house in December 2010. Just wanted to make sure if there is any tax credit that covers that period. Thanks

Rosey February 5

Sorry but the answer is no.

Marie Wagner December 28

It has been 18 weeks since my tax person and I sent the correct information and as yet haven’t received the tax credit… How long will this take to receive my money..

Prescilla Ross-Young December 18

I would like to know if it’s too late to do an amendment for the housing tax? I filed for the housing credit on the 2008 taxes, but we didn’t get our home until February 2009. I know it’s a $500 dollar difference and with the new tax there is no payback policy.

Lue M December 6

My husband and I signed a contract to purchase our second home before April 2010. We were suppose to close on September 17, 2010. However, this was a short sale and we are waiting for leins to be satisfied before closing. Are we still eligible for the 6500.00 tax credit even though we did not close before September 30, 2010 but do have a binding contract before April 2010.

Rose January 1

I’m sorry but you can’t.

Dorthy December 2

We filed an amended return end of July for the existing homeowner $6500 tax credit for building a new home. the IRS received it early Aug. I called to check on the status at 12 weeks and was told it was taking 16 weeks. I just checked with them again as it has been 16 weeks. I was told it had been assigned to someone so an inquiry was filed and I was told to call back in 30 days if I dont get a response… either a call, or letter or the check. The person I talked to said it was past the 16 weeks and the check should have been issued so the inquiry will at least generate a response…. more likely another 30 days of waiting on our end. We had our tax accountants file and made sure more than enough appropriate supporting documents were attached. So to those wondering…. expect a long wait to get your credit….

Ray December 28

Just checking to see if you received your check yet. Called on 11/30 and was told the same as you…my filed has been moved to someone else for further review, std. practice with this rebate stuff. Can take up to 180 days!! Someone is supposed to contact me within 30 days…here it is 12/28 and I still have not heard anything!! I’ll just have to hold on and hope I recive it before next Christmas!!
Happy New Year to all!!

Dorthy December 29

No, nothing. No check, no letter, no call. I called last week again and they said call back January 1. that is all they would say. couldnt tell me if someone has actually even looked at my file. there are no notes indicating anything other than they received it and it was assigned to someone, whatever that means. That “someone” is obviously buried with work or doesnt care. I don’t get it. I just read a post at another site and the poster is a tax preparer. He filed for the FHB, got disallowed (he obviously would know he qualifies) and he sent his argument stating why he does indeed qualify and now they just keep telling him it is in reveiw and they need 45 days, then another 45 days needed, when he calls they only tell him another letter will be coming. it is sickening!

Ray February 14

called a few weeks ago and was told my check would be cut on 2/11, which was last Friday. As soon as I receive it, I’ll post a notice here. I have learned to be very patient. Not much else I can do.

mjcturk November 13

As a Foreign Service Officer serving overseas, I qualify for the one-year extension of the $8000 credit. I would like to buy a home — becoming a homeowner for the first time — and get the credit. However, I will not be back in the U.S. till 2012 at the earliest, so I will want to immediately rent my house out. I intend for it to be my primary residence, but I am still assigned overseas and won’t be assigned to the U.S. any time soon. Can I qualify for the $8000 credit and still rent out the place for the next 2 years? Or does being posted abroad prevent me from getting this credit?

Ray November 11

I refiled my 2009 1040 on 7/2 and am still waiting for my $8k. It is very discouraging to have to wait so long. Just wondering if other folks are in the same boat.

Dorthy December 2

see my poste I just left today….

Ray December 14

Same story here. Called on 11/30 and was told it had been assigned for further review…could take up to 180 days….give me a break, this is supposed to help new homebuyers but as usual middle America gets the short end of the stick!

Dorthy February 10

Ray, gotten your check yet? Still waiting… it is now Feb 9th, 2011. I have a tax advocate who says will have an answer for me next week… We shall see….

Charles Myers November 10

Has anyone heard anything about the possibility of not having to repay the $7500 tax credit? I know it is supposed to begin repayment on my taxes this coming year.

Mike October 26

If I am ex-military can I claim the credit? I retired about 5 years ago and want to claim the credit. I live in CA.

Andy October 26

According to the IRS, Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.

So ex-military will NOT qualify the special extension, per the last line in the above statement.

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase.

Josh October 23

I am filing $6500 tax credit, my understanding is that I need to file Form 1040X and Form 5405. Can anyone tell me which line or section I should fill on Form 1040X?

Thanks

KAY October 22

WHAT IF YOU RECEIVED THE $8,000.00 FEDERAL REBATE AS A FIRST TIME HOME BUYER AND AFTER
LIVING IN THE RESIDENCE FOR 1 1/2 YEARS THE CITY STATED THEY WERE PURCHASING THE
HOME FROM YOU AS THERE WAS A PROBLEM WITH SEWER THEY INSTALLED. DO YOU HAVE TO PAY
BACK THE $8,000.00 OR ARE THERE UNCONTROLLED EVENTS THAT ARE QUALIFIERS FOR NOT HAVING YOUR REBATE RECOUPED?

Christie October 20

I do not think it is fair what so ever that the armed force members have until 2011 for the refund! Me and my husband finally got enough money to buy a house, we are closing Nov.2010 and we cant get the refund now but calfornia and armed forces can…………………………………

james November 10

GO FIGHT AND THEN BITCH!

Kate January 29

To think that the government has extended a tax credit to the very people prepared to die for this country is propostrous! How dare they? Sleep in dirt, take IED’s, watch their buddies die and be maimed, not see their spouses or children for weeks, months or years, move every 2 to 3 years trucking their families along, getting paid a whole 25 to 40 k a year after 13 years of service and the government extended them a credit….what the heck is wrong with America?

Marine wife.

russ October 20

I had heard Obama said there were tax credits for investing in rental property for 2010.Any one have any information on that?

JR October 13

Can someone explain all this to me….IN PLAIN SIMPLE ENGLISH, Please.
My mother, who I care for, bought a house in April,2010. We we’re told at the sighning that for this 6,500.00 refund, we needed to do nothing, simply wait about 6 mo. the check would automatically be sent.
Well, that 6 mo. is here. And we need that credit in order to survive. BUT now that I look into it more, it looks like it is NOT ALL AUTOMATIC. (Why don’t the realitors understand all this?????)
Now it looks like there is again more paper work, etc, etc.
We plan on using that refund to build a ramp, and fence in the yard…..Mom hasn’t been out of that house in almost 6 mo!!!!!! AND has fallen twice chaining up the dog, as compared to just opening the door and letting her out!!!!
We are not looking for shopping money……These things we’re planned into the purchase of this house, and here we stand…..waiting, with no answers, no one to get the correct answers from.
WHAT DO I DO???????

Rosey October 15

Your mom has to file an amended return (meaning that she has to redo her taxes claiming the credit). Keep in mind that there are also requirements that must be met to see if she is qualified for the credit. The credit WILL NOT be sent to you automatically. Also, don’t depend on what the realtor tells you. They are not the experts when it comes to taxes. Their expertise is to sell the house and get their commission. You shouldnt have depended on what they told you. I would suggest to contact the IRS to see what are the next steps that must be taken to get the credit.

Redwng1 October 11

I just realized why I was not getting any responses…I made a mistake… we signed on April 27th,2010…not August.

Original message:
“Is there a way to file an extension after the September 30th date. Builders will not be complete with our home until October 22nd. We signed on August 27th, obviously missing the original cut off date back in June, but this is not our fault the builders are taking forever to finish?”

Rosey October 20

Unfortunately, you cant file an extension to the original due date. The government has to file the extension if they want to.

Rosey October 11

Here’s my situation:

I signed the contract on April 12, 2010. Price had to be amended due to change in pricing. We submitted an amended contract on June 28th. Do I qualify for the credit?

Rosey October 11

We closed on August 5th.

andys2i October 11

This one is tricky. The key criteria was the contract signing date – had to be before Apr 30. Was the amended contract a brand new contract, or a minor update to the existing contract (ie. only modified section had to be approved). You could submit a claim for the credit, but you should try calling the IRS before hand to check this. To me, you should qualify if the contract was for the same property.

Rosey October 13

Hello,

The contract was signed on 04/12/10. We DID NOT sign a brand new contract. The only thing I had to sign was an amendment showing that the new contract price is now $71k up from $65k.

Jason R October 9

I just posted on the $3750 mount to be repaid.
It just occurred to me that my wife may also be receiving a letter that she also owes $3750 for the credit. That would make it the $7500 that we received and now owe back to the govenment.
Thanks;
Jason R

andys2i October 10

That was going to be my comment. But does that mean you are filing seperaate returns? Or is your wife ineligible for the credit? I would check with an accountant or the IRS to be sure, based on your other financial data.

Jason R October 10

We file jointly. She is a homemaker and does not have a monetary income. She did receive the credit as I did, for a total combined of $7500.

Ryan October 20

Did your wife receive a letter as well? I don’t dare call my ex just yet, till I find out the facts. Any answers as to whether the amount was lowered from 7,500 to 3,750?

Jason R October 9

Hello;
We purchased a house in November of 2008 and qualified/received the $7500 tax credit. My understanding was that the $7500 had to be paid back in $500 increments starting with the 2010 tax return, and continue for the next 15 years.

I received a letter in the mail today from the IRS indicating that we only owe $3,750 and it should be paid back in $250 increments starting in the 2010 tax return. Is this a mistake on their behalf, or did the amount that needs to be refunded to the government get changed? I do not want to get my hopes up but I’m praying that the amount we owe was adjusted down.

Any help or input would be greatly appreciated.
Jason

Ryan October 20

I got the same letter. I don’t know whether to just say nothing, or look into it in case I get screwed later. Could it be that because I got divorced, they think that my ex owes too?

Jason R November 10

I was thinking the same thing. I don’t know if I should ask because it might get corrected to the $7500 amount. That’s prob the right thing to do though.

Mija October 6

So, Im beyond frusterated. I went into short sale contract july of 2009. I closed on the house… TODAY… October 6th.. Am I completely screwed… or is there something I can do?

Cindy October 4

It had to happen. Prices are still going down in my neighborhood and people that purchased homes and received the tax credit are now listing them as short sales, after holding them less than a year. I suspect they already sent the tax credit. Has our government given any thought has to how they will collect from people that don’t stay in the homes they purchase? I hate to join the line of people with their hand out, but I owe less on the house than it’s worth and I can afford it. I just need to sell to find appropriate employment elsewhere. Where’s the help for people like me?

janice davenport October 1

My husband bought a house in his name, but we did not get the tax credit because i had owned a home before. This new home is not in my name. Is this true

redwng1 September 28

Is there a way to file an extension after the September 30th date. Builders will not be complete with our home until October 22nd. We signed on August 27th, obviously missing the original cut off date back in June, but this is not our fault the builders are taking forever to finish?

Bill Stanton September 22

My situation trying to figure out if somehow we can get the tax credit for first time homebuyers we entered into a contract and had it before apr 2010 and since then the tax credit has extended twice but our contractor has dragged their butts on getting it done and it dosent look like it will be done before the deadline at the end of sept 2010 just wondering if its gonna be extended for people that were under contract before the deadline but the contractors havent finished the work yet, anyone got any ideas on if they are gonna extend it again so the contractors can finish the work or if there is some way i can still get it
~Bill

Rosie September 19

Here’s my dilemna at the time: I and my spouse purchased a home on 12/15/2009, which was a move-up/repeat home buyers (existing home owners) purchasing a principal residence transaction. I used Turbo Tax (as I always have for the past 4 years) to calculate my taxes for 2009 and gave all the information in to the tax software and it came back that we were qualified for the refund. So I made copies of what I read on the IRS website as to what I had to send in and mailed it certified with a return notice on March 16, 2010. Initially I sent in copies of the following with Form 1040 Income Tax Return 2009 on March 16/2010:
Form 1040
W2’s
Schedule D (Land we sold in 2009 and purchased in 2007)
Form 2441
Form 8863
Schdule L
Form 5405
Schdule M
Signed HUD Settlement Statement (12/15/2009 Purchase of New Residence)
Form 1098 Copy B (2009 for Existing Home & Land that the existing home sits on)
2009 Tax Statements form the Appraisal & Tax assessor
Insurance Policy Declaration
I received the certified notice with a March 24,2010 date stamped by the IRS. Then I received a letter from the IRS dated April 19,2010 regarding that the Information on our return is in the process of being reviewed and they will contact us within 45 days. We received a letter from the IRS dated May 21, 2010 saying that they’re examining our 2009 federal tax return and that we need to provide additional information to substantiate the Tax Credits & Long Term Residence Credit. So we sent in a copies of the following that has been requested by the IRS via certified mail dated 6/16/10:
Current Mortgage Loan Statement dated 6/1/10 from Chase
Recent Pay statement (within the last 2 months) showing name and new address
Change of address confirmation from the U.S. Post Office showing your former address and new address
Copies of tax statements and cancelled checks for at least 5 years (copy of bank estatement and bank statement pages showing the payments)
Copies of annual mortgage interest statements for 5 years (Form 1098 Copy B)
We received the certified return notice from the IRS with date stamped 6/22/10. On July 5, 2010 we received 4 identical letters sent 2 per envelope from Dennis Kidd, Operations Manager, Examination of IRS stated, “Thank you for your correspondence, which was received on 6/22/10. We will review your response and you should receive a reply from us within the next 30 days”. Then on August 2, 2010 we received 4 identical letters sent 2 per envelope from Dennis Kidd, Operations Manager, Examination of IRS stating, “We are reviewing your response dated 6/22/10. You Should receive a reply from us by 9/5/10”. Lastly, we received a 4 identical letters sent 2 per envelope dated 9/13/10 from Dennis Kidd, Operations Manager, Examination of IRS stated, “Please accept our apology for not being able to review your response dated 6/22/10. We are still reviewing your response and will reply by 10/15/10”. In the letters dated July 5th, August 2nd, and September 13th all stated that, “You don’t need to respond to this letter; however if you have questions or need additional information, please call the person whose name and telephone number are shown above”, but there’s no name in the Person to Contact other than Dennis Kidd’s signature at the bottom of the letter. At this point from all the correspondence that I have received from Dennis Kidd, Office Manager, Examination IRS that I know I will have to contact him and ask when or will I ever get this refund. I would like to receive feedback from anyone out there that have received their refund from IRS or have had similar experience on move-up/repeat home buyers (existing home owners) purchasing a principal residence transaction.

Sincerely,
Rosie

frustrated October 15

i understand your situation, i was faced with the same situation. i mailed in al the documents they asked for twiced. i closed on the home in in mid september, but have not moved due to having to have everything hooked up becaused i bought a mobile home. now they tell me i cannot take the credit because i did not moved in before sept 30th. if the deadline for closing is sept 30th how can i move in before that time if i closed on the 29th then it would be impossible to moved in without having all the utilities hooked up. i wish i new how to write congress and let them know that they need to be more clear in explaining the qualification terms.

v frolich November 7

Rosie I have been fighting the IRS over the tax credit for almost a year. Got the same letter you got. Two letters duplicate in the same envelope etc. Don’t know what to do except go postal.
vfrolich

Rosie November 8

I called the IRS during the later part of September and I talk with an agent who told me that they have been bogged down with the tax credit and they were in the process of hiring due to the high volume of returns submitted for the home tax credit. My case was finally issued to an agent and that I would be hearing from them soon. Those letters that we’re getting from the IRS is automatically generated from the system if the return hasn’t been assigned to an agent. The agent also told me that I could call back in 2 weeks if I haven’t heard anything. I extended my invitation to him, for the IRS to come and audit me. I was patient in the weeks to follow and low and behold the refund was deposited in to my checking account. I hope all goes well for you.

Shiquita September 14

I’m the single mother of two small childern. I have been under contract sine March. Paid my earnest money, I had the apprasil done, and the home inpection. Only later to be hit with the home had not been forclosed on properly. They asked that i give them some time to run it correctly that has been since May. Now my realitor nor the listing agent had not heard anything from anyone. I have made phones calls myself and nothing. You would think the person who cashed the check would have given some type of info. Well now it seems most definitely i well be missing out on the tax credit for the second time and I had no control over this situation. This has been very upsetting for me. And it seem that the bank in which owns the home doesn’t CARE…….

Sallie September 14

My husband and I sold a house to a couple on a land contract and it clearly stated in the land contract that the $8000.00 stimulus money was for the down payment. We/they submitted all the appropriate paperwork to the IRS and it was approved for the $8000.00 They have since received the $8000.00; however, they never gave it to us. What can we do about this. In my opinion, this is fraud. Why is the check not made out to the purchasers and buyers?

I await your relpy

Sincerely,

Sallie

andys2i September 14

The buyers qualify for the new home BUYER credit. It is not a seller credit. You should have just asked for the $8,000 as there looks to be little recourse for you to claim the buyers credit.

Rose September 14

Andys2i’s comment is right. If you are the seller, you get nothing. This is only for first time HOMEBUYERS. My questions is, were you told about something else different by your selling agent? Why are you going after the homebuyers to get the $8k tax credit?

Sallie September 16

We want the money because it clearly states in the land contract that they were to give it to us for their down payment. They agreed to it and signed the land contract with those terms.

rose September 14

The other comment is right. The tax credit is ONLY for buyers and NOT sellers. Were you promised the $8k? Why are you going after the buyers to get the tax credit?

john September 13

So my issue is that my wife purchased a house in 2007 under her name only, we got married in my of 09. She passed away in Jan 10. I purchased a house in April 10. Now I filed my taxed as married jointly and sent in an amended return for the housing credit since I have never owned a home. I just called the irs and said that I was denied, I have yet to reciev the letter but Im assuming it has something to do with that.

Mel September 8

I divorced in January, and as part of my settlement with the ex, I took ownership of the home. I had to acquire a loan in my name for the remainder of the mortgage payments. Does this in any way qualify me for any of these credits? I have lived in the home over 5 years.

Christine August 31

We bought our second house in 2009. We closed in October. We expected to receive the $6500 tax credit, but our tax preparer said that we had to close on the house between November 1, 2009, and April 30, 2010. Are we eligible for the tax credit? Should I file an amended return?

Jeffery August 30

I hope administration officials realize that giving potential home buyers the notion that a home buyer tax credit MIGHT be revived will absolutely and unequivocally depress home sales over the next several months – the administration should have Donovan or another HUD spokesperson explicitly state that there is no plan to revive the home buyer tax credit in the foreseeable future – and they should do this SOON!!!!

laura August 28

Hi Andy,

I know you having been stating all along that an extension of the closing date does not seem likely, however, now that the numbers are in for July, and are much worse than predicted, do you think there may be reconsideration? A good solid date like contract & close by 12/31/10 to finish the year off with a good number of transactions and then perhaps something a little different for 2011, maybe a lesser amount that would appease those who were unable to purchase in 2010 and let the holdouts know that it’s not going up and to purchase while they are ahead? (sorry, but I get carried away with ideas)

Anyway, I am asking because I was under contract prior to 4/30, but had to back out after inspection due to severe hidden problems with the house and am now set to close on another one 9/20.

Thanks,
Laura

andys2i August 28

I agree the housing numbers/outlook is pretty bad. However the mood in Washington regarding more spending is even worse, so I don’t think Obama is going to push through another credit extension. But the good new is that interest rates are getting lower and lower so new buyers are getting amazing rates (4.25% is the lowest I have heard for a 30yr fixed).

Anyway, there are sure to be more stimulus payments in the works, so maybe you will luck out somewhere else. Also don’t forget all the home energy rebates you may be entitled to.

Angline August 30

I saw state of union over the weekend and HUD Secretary Shaun Donovan said that yet another home buyer tax credit could be possible. This one could involve not just first time/move-up buyers, but a credit for buyers purchasing foreclosed properties or short sales (when the bank allows you to buy a home for less than the value of the outstanding mortgage).

Still early days, but given the success of this credit I could see one targeting foreclosed properties as a real shot. Particularly if August numbers are bad.

Brad August 27

my wife and I closed on our house in June of this year. We met the may 30th deadline. however, we just got a denial letter from the irs on an amended return for first time home buyers. it stated we claimed tax credit/proceeds from sale etc.

We sold a house that was her mothers after she pasted away..we never lived in..and only became my wives because of her mothers death less than a year before..it was an inheritance. Is this grounds for being denied the FTHB credit?

Rose September 14

Assuming that the house was under her name when it was sold, this itself disqualified both of you to get the tax credit. Eventhough the two of you never lived in the home, it was still considered her house since it was under her name at one point. This was the reason why you guys got disqualified.

Jay Przebieda August 27

I work with someone who was not informed about the tax credit available and found out beyond the two week period of closing. Is there any recourse for her? The escrow company blamed it on her broker who was out of the picture by that time. Thanks for any input.

Cameron August 25

My husband and I were under contract for a home on April 12, 2010. We had a mold test done on a Monday, and we were suppose to close on Friday. We received the results of the mold count on Thursday, and needless to say, they practically begged us not to move in. They said that the mold count was so high, that the walls and carpet would have to be replaced before we move in, “the walls.” So we did not get that house, but went under contract for another home in May. Are there any loop holes where we could still qualify for the FTHBC? It is not our fault, and there was no way for us to move into that home. If we would have, we would have had to use that $8000 plus more for the repairs. And whose to say that the mold would not have come back. Please, is there anyone that can help us?

anthony September 7

I’m in the same situation were you able to get a resolution

Kim October 8

Hello! I am in the same situation. We were under contract in a foreclosure and the bank changed hands 3 times and then raised the price of the home.. So we put another offer in on a different home in July and closed on 9/16/2010. I feel the same way the bank is who withdrew from the contract, but we did meet the deadline for closing just not for being under contract with this new home.
If anyone has any information for us we would appreciate it.
Thanks

Evelyn August 25

My husband and I recently married and purchased a home in January 2010. He had owned and lived in his home for over 5 years. I am I first time home buyer and moved in with him after we got married September 2009. We received our tax credit, however our homebuyers tax credit was not included. We have not received a letter yet explaining when/if we will get that credit. Does anyone know if they send two separate checks? Or if we wouldn’t qualify?

G W BAKER August 12

Further stimulus to the ‘housing market’ without the cooperation of lending institutions to ease credit and stem the tide of foreclosures will have little if any effect toward economic recovery and stabilization of the housing sector . . . regardless of how low home loan interest rates fall and unemployment remains at or close to its present levels!!!

Dave Wendel August 10

We purchased a home in mid-2008 and receieved the $7,500 tax credit. That tax credit is more of a loan and not a real credit as it is to be repaid over 15 years. Is there any action in congress to eliminate the repayment. I have written to all the Senators and Congressional reps that I can find and get no real response. Does anyone know of any action?
Thanks,

andys2i August 10

Unfortunately no. The older $7,500 credit had different rules with each future $8k a better deal. Like the marriage penalty for couples this is another unfair aspect of the credit. Let me know if you hear the Senators like Tina (one of the past commenters) did.

Tina August 8

Hi Andy –

We were under contract on April 16, 2010 and closed on our new home together on June 14, 2010…so we were within the requisite timeframe.

The reason we were denied any of the credit is due to the MARRIAGE PENALTY. Because we were not of the same ownership status (.i. a married couple has to BOTH be either a 1st time home buyer EACH or they both have had to been long time residents of the same home for 5 of the last 8 years.) SO – we canceled each other out.

I appreciate your answer, and I just wanted to clarify the facts for you and ask if you new anything about the status of the bill that was sponsored by Rep. Eliot Engel (D-NY17) to remove this marriage penalty. I am calling his office today to find out the status – it was introduced in March 2010 and is in the House Ways & Means Committee. I promise you I will pursue this until their is a vote because this is ludicrous to hard-working, tax paying citizens who are married. We are not the only couple who is left holding the short end of the stick. You can google this topic on the Internet and there are TONS of irrate taxpayers such as ourselves.

Please let me know if you want me to keep you in the loop regarding my contacts, info I find out, etc.

My husband and I are thinking of putting a website together to campaign for all of us married people who are being penalized by the way the law is written.

Thanks, Tina and Alan

Click here to view an article: http://www.realestaterama.com/2010/03/18/home-buying-experts-support-new-legislation-to-remove-home-buyer-tax-credit-marriage-penalty-ID06809.html

Here’s the article as well:

AVONDALE, AZ – March 18, 2010 – (RealEstateRama) — The National Association of Exclusive Buyer Agents (NAEBA) expresses support for legislation recently introduced by Representative Eliot Engel (D-NY17) that would amend the Internal Revenue Code of 1986 eliminating the so called “marriage penalty” from the Home Buyer Tax Credit.
The current guidelines require both spouses to have the same exact ownership history in order to claim the tax credit, a standard that does not apply to unmarried couples, effectively penalizing married homebuyers.
“We applaud Representative Engel’s leadership on this issue and fully support this legislation that will make the current homebuyer tax credit section of the Internal Revenue Code of 1986 more equitable for all potential home buyers,” said Benjamin Clark, 2010 President of NAEBA.
The Worker, Home ownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence and a tax credit of up to $6500 for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The tax credit is available for eligible purchasers who are in contract by April 30, 2010 and close by June 30, 2010.
H.R. 4701, introduced by Representative Eliot Engel (D-NY17), would provide relief to certain married couples who would otherwise be ineligible for the first-time homebuyer credit. The bill provides that married individuals filing a joint return would qualify for the appropriate credit even where one spouse is ineligible. For example, if one spouse is a first-time homebuyer and the other is ineligible, the couple would be treated as first-time homebuyers. However, such a couple could qualify for up to $4,000.00, as opposed to the full $8,000.00 tax credit had both spouses been first time homebuyers. The bill has recently been introduced in the House.

rob August 4

Hi, My wife and I wanted to move out of our house and we only have been there for a year. I know we have to pay back the 8,000.00 credit, but I was wondering how that process works
Thanks

STRIKE5223 August 4

WHY DO I HAVE TO PAY MY $7500 CREDIT BACK WHEN EVERYONE ELSE GETS FREE MONEY?? I BOUGHT AND PAID DURING THIS WHOLE STUPID SITUATION WHILE EVERYONE ELSE WAS GETTING UNEMPLOYMENT. MY HUSBAND WAS LAID OFF TOO, BUT WE STILL HAD TO PAY. I SHOULDN’T GET PENALIZED FOR CONTRIBUTING TO THE ECONOMY.

Tina August 3

Hi Andy – my husband & I just got our IRS letter denying us any pof the $8,000 or $6,500 home buyer tax credit. We married in 2008, I owned my home since 2001 which we sold in May 2010 to buy our 1st home together on June 14, 2010. My husband qualifies as a first time home buyer & I qualify as a long-time resident buyer, but our ownership status is not the same, so we cancel each other out and have 0 tax credit. The worst part is my widowed-mother lent us $8,000 & we promised to pay her back when we got our tax credit. UGH! I read that Rep. Engel of NY proposed a bill in 3/10 to remove this marriage penalty. Do you know anything about its status? If you research this topic, there are thousands of taxpaying married couples just like us who were duped by this ‘tax’ credit “bait & switch” trap. HELP!! Thanks!!

andy August 3

Tina you had to have bought before April 30 2010, to qualify for any of the home buyer credits. That is why you were rejected (I am surprised that the IRS did not state that in thier letter). You were 2 months late. Sorry, Andy.

Kathleen August 5

Tina,
This is the same issue I have. My tax person said she contacted the IRS and I do not Qualify for the 6500. Because I lived in my house for over 5 years but my husband didn’t because we only been married 2 years. They state we would have had to li e in the house together for. 5 yr. This doesn’t seem right how they can penalize us for being married. I am waiting to file hoping for a change. Not very happy how they worded this credit. This effects a lot of people who anticipated a credit.

RHONDA August 5

IRS told me that even though me and my husband have lived in the same house for over 5 years we DO NOT qualify because we WERE NOT

RHONDA August 5

sorry, but anyway the IRS said we HAD TO BE MARRIED for those 5 years for us to qualify, which we were not. We have lived together for 5.5 years in a house i owned for 11 years but were only married for 4 years.

Tina August 11

Hi Kathleen –

I did join a free website called, “CONGRESS.ORG,” and through this website I sent an email to PRes. Obama and the elected Senators and Congreesmen that represent us in the area of West Palm Beach, FL we now reside. Like I wrote Andy, I will not stop the emails, phone calls, letters, etc. until they amend the Internal Revenue Code to remove the marriage penalty. I even sent an email to EVERY FOXNEWS TV show that I could an email address for about this….We all need a VOICE and if you also write to PRes. OBama and your elected representatives in your area by joing CONGRESS.ORG, possibly we can see a change!

Here’s the link to my letter to Pres. Obama:

http://www.congress.org/congressorg/bio/userletter/?id=3181&letter_id=5601849656

tms August 3

It does not matter anyway. If you buy a house now only to think you will get the tax credit shortly your wrong. I have been waiting 8 months for my return and it was a very simple retrun all I had as a credit was the first time home buyers credit. They keep giving me the run around. I get a letter every 30 days telling me they need copies of the same paperwork I sent them in jan,march,june, and july. Every time they send a letter it puts it back another 6 to 8 weeks they said. They will not tell me why they are delaying it just that it is being reviewed. I need that money to do upgrades and repairs to the home.

Eagle August 2

Hello,

My husband owned a house before we got married. We bought a new one recently in February 2010. We did not qualify for the $8,000 since we were married and he had owned a house. We called the IRS and they confirmed that even though I didn’t own a house before, since we were married I couldn’t claim that credit.

We also can’t claim the $6500 since he had not lived in that house for 5 years, he only lived there for four years at the time we bought the house we are currently living in.

Is there any other tax credits available that I may not be aware of. I live in Missouri.
Thank you so much,
Eagle

Home buyer rebate July 27

The federal home buyer tax credits may have expired but you may be able to get a commission rebate from your real estate broker when buying a home as commissions are negotiable. Many home buyers are unaware of this. At least the private sector pays for these rebates as the federal tax rebates are paid by the tax payers.

David Gorman/Broker
Cashback Realty.com

Priscilla15 July 26

My husband and I are on the process of buying our house and we just found the house like….2 or 3 weeks ago and are almost done with the process in 2 weeks! I know it applies to everyone that bought a house before April 30th but since they extended the date to september 30th, does that mean we would get it as well? That money would help so much right now!

andys2i July 26

Unfortunately you need to have signed the contract by Apr 30 to qualify. Sep 30 was just the closing date extension.

Phil Lewis July 25

I am building a new home which will be at least basically done by Sept 30. It most likely will pass all building codes by then, but may possibly still need some walkways, landscaping, or touch-up painting. Would a statement by the bldg code folks,stating that it meets all code specs, be enough to qualify for the tax credit, or is a certificate of occupancy issued by Sept 30 absolutely necessary?
Anyone?

andys2i July 26

That’s tricky. Technically you need to show that you are able to move into the house for the loan to be approved so a certificate of occupancy is usually required. I suggest you call the IRS and get a written clarification on this so that when you claim the credit you don’t get rejected.

Patel July 25

I am a first time home buyer…I signed the settlement contract in JUNE 2010 on the basis of the $8000 tax credit was still available, ” the lender STATED that the tax credit has been extended till Sept. 2010 ” and I would receive the $8000 TAX CREDIT after filing. Well I later found out after I had closed on the house that I did not meet the DEADLINE ” contract had to be signed on or before APRIL 30, 2010 .” Well I went back to the lender and she said that only the closing date had been extended not the contract signing…I explained to her that ” SHE HAD LEFT THAT PART OUT ” ..she said she was “SORRY” that it escaped her mind….I mean really what the F…!!! So now I am going F-ing Crazy..is there anything that can be done!!!! They will not let me out the contract.
All they keep saying is SORRY!!! SORRY!! SORRY!! … But that does not HELP ME!!! I need something to be done..It’s a deceptive way that lenders are TRAPPING helpless first time home buyers….F-ing FRAUDS!!!!!!!!!!!!!!!!
Thanks

Jazz September 22

I feel you!!! I signed my contract on June 3, 2010 and closed on August 30th I want the money too..they should allow all that close by September 30, 2010 get the tax credit no matter when they signed the contract just as long as they close by the deadline…fight, fight it!!! I will too!!!

julie October 2

i completely agree thats horrible ther should b something that can b done!!

wilder boar July 23

The IRS hasn’t even paid out in full on the $8,000 credit for 2009 and they are commencing an extension(paying some of those first???)!
I have been waiting and fighting over 4 months for my $6,700.That is WHY I bought the home.
The IRS is trying hard to ELIMINATE as many LEGITIMATE claims for the first time home buyers rebate, under orders from the Federal Governemt employees at WHIM.
Caveat Emptor.Take NO LESS than you are entitled too, expose them to your congress people, online, media news, billboards.
IRS is treating legitimate tax filers for this advertised rebate FRAUDULENTLY.THIS is where the bulk of the fraud exists, at the IRS level,NOT the tax filers.
Fight them, it may take up to two years, but join class action suits, engage in a private suite against the IRS demanding rebate of legal fees and your interest.The IRS IS paying SOME(but NOT all)interest for the deliquency in paying them.

Janice Lagusker July 23

My son is now looking for a first time home and I would appreciate keeping me informed on any new tax credits he could get. Thank you. Janice Lagusker

Please email me so I know that you have received this request.

Richard Steben July 19

My client had a home where she rented the 2nd floor and claimed it as rental property.

If she claimes the tax credit on an ammended return does she also have to claim the gain on the portion of their investment property or does this go on 2010 return.

Thanks,

Richard Steben

tms August 3

If she claims income such as rental income on the property she will not get the tax credit.

Rose July 17

I went under contract on April 12, 2010 with both seller and bank approved the short sale offer ($65k). The bank stated that we have to close by June 9th, otherwise, the approval will be voided. Unfortunately, we were not able to close on that date and because of this, the BPO needs to be redone and the bank has increased its price to $71k. I would like to continue with my purchase, however, since the price has changed, we have to file an amendment to the purchase agreement (basically amend the contract stating that the offer is now $71k). My realtor needs me to sign ASAP but I am hesitant to do so because I am thinking that this will void the original contract and I will not get the credit. Please advise me what to do and let me know if I will get the credit or not.

KT July 14

I got in on the tax credit but due to certain issues I am having to relocate, I know I will be required to pay the credit back, my question is will it be “taken” from my income tax refund next year or would I have to pay in full all at once?

Rob August 4

I would love a answer to this question as well. ?

Frank July 13

Hello I’m writing this email to ask you if you know if there is another first time homebuyer tax credit program in the talks? I’m closing on my home on the 16 of July but i went into contract in June. Have you heard any talks of any new extensions for new home buyers like myself? Thanks a Million.

Andys2i July 13

No, only the closing date for the existing credit was extended. At this stage I do not think any more credits for home buyers will be made available.

Thanks,
Andy.

kathleen July 13

I built a home and had the contract in place by the necessary deadline, rushed to close on June 25, so that we would be eligible for the $6,500 existing home owners tax credit. I was told now that I do not qualify, because I purchased my existing home years ago before I was married and my husband has only lived in the home for the past 3 years and he would have had to live in the home for a consecutive 5 year period. Is this true? I know several people with this same circumstance. How can they penalize people for getting married, when they are allowing unmarried people to claim the first time home buyers credit. This just doesn’t seem correct. Everyone should get the credit that qualifies.

C. Myers July 9

I purchased my home with the $7500 tax credit that must be repaid. I wish the government would go back and make this credit where you did not have to repay the credit. All of us that bought a home then have to pay back while everyone else that is buying a home is getting a much lower price and getting a $8000 tax credit that does not have to be repaid.

bobbie July 9

I know there are still lots of homes out there needing families to live in so my plea is for the President to also extend the date from April 30, 2010 in which you had to already have a signed contract in order to qualify for the tax credit. this would give others a chance to purchase some of the many empty homes that does the economy no good if they just set there with mortgage companies and banks losing. This would line up with the already in place extension until September to close on the home. thank you and your help is appreciated.

REGINALD LOVE SR July 8

I was in contract for a house in April, there was a problem purchasing that particular home, so that first contract was voided and started over, we found another house to purchase but it was after April 30th, Will I still be eligible for the Home Buyer Credit, even though we did not purchase the first home!

andys2i July 10

Not based on what you have described. According to the IRS, you have to close on the contract for the same house you bought before Apr 30. I.e the paperwork needs to show the same house you closed on, is the same one you entered into a contract for before Apr 30.

Greg July 8

I recently purchased a new home i am a first time homebuyer. However my contract went through may2nd, but i closed on june 15th. and i’m living in my nice new home.. can i still qualify for the tax credit?

andys2i July 10

Looks like you missed the deadline by about 3 days, which disqualifies you unfortunately.

Elias July 8

Now i entered in a binding contract before april 30th but due to circumstances beyond my control i had to cancel the contract and quickly entered another one june 6th would i still be able to qualify?

Sandi Hughes July 8

Is there a possibility that the deadline for the binding contract will be extended somewhat similar to the extension passed for closing to Sept. 30, 2010? It would be nice if that date could be extended to July 31st to help home buyers.

hannah g July 8

Wow! The government is a bunch of idiots. This bill will help very little.. what about the people who are looking to buy NOW. We are all waiting around to see what is coming for us. I have put my search on hold until after September to see if they will extend the whole bill. Very few will actually benefit from extending the closing dates. Drags us down more why don’t ya..

Jeana July 7

I bought a home in 9/2009 and had never owned a home before. I was single and the home is in my name alone. I then got married in 10/2009. My Husband does own a home. The IRS is now telling me that I do not qualify for the first time home buyers credit. This is my home and was purchased before the marriage and with my funds alone. What can I do about this? Thank you.

andys2i July 7

I am not sure if the IRS disqualified you on other criteria (eg income etc). However you meet the eligiblity criteria, you should write a letter to the IRS or go through an accountant (for $6500, the accountant fee would be worth it). However, also remember if you have filed jointly then you would still only be eligible for 1/2 the credit.

Jeana July 7

Thank you for your reply. I more than meet the income requirements and the home was purchased be for the marriage. I have checked the IRS web site and found that this on their site. “Eligbilty for the first-time home buyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credis is allowable to Taxpayer A. Taxpayer A may take the maximun credit.” According to this I should be elgible for this credit. But they tell me that because he owned a home with in the last three years I do not quilfy. I have sent them all of the documentation to prove all of this and I get no reply form them. Thank you for your help.

Linda July 7

My husband and I are looking to purchase our first home and we just got preapproved. However, the tax credit expired at the end of April. They gave an extension to the people that are closing on their houses, but are they going to give one for the people that looking to to sign contracts?

andys2i July 7

Unfortunately no at this stage. The qualification deadline was not extended, only the closing date.

Georges July 6

It is not fair to not extend the the ratification period. Those who get their binding contract after the april 30 because of conditions that there can not control and closing by June 30 have lost this credit. The lawmakers must do something about that.

CharlesG July 5

Seems like fluff legislation. The amount of people it will help will be extremely minimal. Would have helped more if they extended the contract deadline not the closing deadline.

as for the comment on the devaluation of the dollar, That’s not a horrible thing at the moment considering the situation we’re in. (we need to export, get jobs back. strong dollar hurts this.) Also to that comment, if you’re a first time buyer you qualify for a 3.5% down load. Which is a decent deal if you’re not planning to live in the house forever.

John Birshire July 3

I am a potential first time home buyer who was just starting to get his feet wet by seriously shopping for the first time. Have been at my current position for 5 years, recently received a $5000 raise, and feel as if I have pretty good job security. Just to be on the safe side I decided to be frugal and buy below my means, but any purchase is better than continuing to throw away $10,000 a year in rent.

However, my moral took a disastrous hit when I realized the $8,000 tax credit recently ended. Who wants to buy after missing a major incentive? Almost as bad as finding out my car was 1 mile per hour over the cutoff to qualify for Clash for Clunkers. I’m going to put my search on hold and hold my breathe awhile waiting to see if another incentive is introduced. If so, I am going to become extremely motivated to buy before I miss another opportunity.

PL July 3

I wanted to know if there is a though of the government to change the binding contract date. I got the contract signed by the seller on May 7th and I closed on June 15th. It is unfortunate that I lost the credit by 7 days.

sandra france July 1

I had a contract signed prior to the deadline of April 30th, but someone broke into the house 2 days after I signed the contract and the seller terminated the contract. I was willing to work with them to still purchase the home, they still terminated the contract. I then found a house and signed the contract just after april 30th and will be closing by July 7th per contract. Do I still not qualify for any credits?

SANDRA FRANCE July 28

I SEE THAT OTHER HAVE REC’D A REPLY FROM THERE STATEMENT EMAILED. I SEE THAT I HAVE NOT. THANK YOU FOR YOUR TIME

This is ridiculous July 1

I hope people realize these stimulus comes at a cost. The more money the US prints the more devalued it’s goign to become.

People should demand these stimulus be stopped. No amount of money would prop up this ailing economy… If people are smart, they should let the housing market tank, the money saved is way more than $8k tax credit…or maybe it’s for people that can’t save if their life depended on it and need to use that for the down payment.

I’d like to see a statistic on how many used that $8k as the downpayment because many don’t even have the money for a 20% down payment.

I’ll just bide my time while all these suckers are buying up and not realizing they can’t afford it.

Shawne July 1

I believe that HR 5623 was passed before the Senate adjourned this evening at 10:25pm.
Extension granted. President needs to sign.

http://clerk.house.gov/floorsummary/floor.html

andys2i July 1

Thanks Shawne. I have updated the post to reflect the new approval.

david debauche June 30

is there any talk of extending, or reintroducing the tax credit 8,000.00 to homes , or buyers that have not locked into a contract prior to april 30, 2010. It would seem a good move, fore the home sales hagve almost ceased since 4/3/2010. As a home builder here in wisconsin, the faucet has turned off since 4/30/10. we bulit 13 homes for tax credit purchaser, now nothing……please fill me in, is there a chance for this to be reinstated, is anyone talking of such ?

andys2i June 30

No talk of that, only of extending the current credit’s closing date from June 30th to Sept 30th 2010. With the huge federal deficit, more government stimulus spending is getting very hard to justify.

Samantha June 30

I am soooo happy that this extention is being proposed. I am one of those that met the first criterior of getting a rattified contact prior to April 30 but my close date was moved out past June 30 due to extreme snow in my City and the builder was able to make the deadline. My city declared a State of emergency yet I was still penalized for weather beyone my control by not being able to claim the credit since my close would now be July 31/ The tax credit was my sole motivation for purchasing a home in this economy so If they pass this bill I would be ever so gracious and a burden would be lifed as the tax credit was orginally going to be used to recover my family after the purchase. Please pass this extention to Sept. 30th. We are Americans, tax paying citizens, we feel the burden of the economy same as the next man, please give us some relief with the credit. People like me need this keep our familys going. Congress if you read please, help us and vote to pass the extention. I wrote every senator, congressmen, my own legislators and even the President concerning this matter, God bless the person that got this bill on the floor, who thought about the little guy who just needed a little help to obtain the American dream of being a home owner. Dont penalize us for what is beyond our control.

kalli June 29

Hi,
They are giving the extension..good better get bank of america & big banks that they close by sep 30th or they incur heavy penalties.

Andy June 29

TMS reports that the House of Representatives is due to vote on the Homebuyers Assistance and Improvement Act of 2010 and the Restoration of Emergency Unemployment Compensation Act. (It appears as though these are two separate bills so that opposition to the unemployment extension would not keep the extension of the closing date of the first time home buyer tax credit from passing.

This would be great news for many of you who signed a purchase agreement prior to April 30th but are having difficulty closing before June 30th due to the slow short sale process and the backlog facing many lenders right now.

t. dilley June 28

I am a 1st time homebuyer in CA who signed a binding purchase contract on Apr. 29th 2010. It was my goal to close escrow June 15th to receive the $8000 tax credit well before the June 30 deadline. I am well qualified to receive the tax credit but now I have had to extend the closing of escrow until July 15th. The circumstances for having to extend the closing and therefore missing the deadline are out of my control. The loan documentation process and the time involved in securing a loan have been the main reason for having to delay the closing. I was afraid I was going to lose it and suffer economic harm, but I just read about this possible extension by the Feds until Sept 30. This a plea to President Obama to extend the deadline for me and the many others who may have the same problem.

glen June 28

I heard tax extension thing is fail, it’s still june 30th. Is anyone has info. regardeing this matter?

andys2i June 28

The provision to extend is definitely in H.R. 4213, but this bill in it’s entirety still needs to be approved by the Senate (and is still under debate as of 6/29). Only when the bill is signed into law by the President, will the home buyer credit extension be official. Until then, home buyers must close by July 1st 2010 to qualify for the credit.

At this stage it is unlikely that the home buyer credit (close) extension will be approved before June 30th 2010. Sad news for many home buyers. But the IRS is likely to allow a “grace” period for late submissions, because they are still taking 8 weeks or more to process past home buyer claims.

glen June 29

Thanks Andy,
One more question, you said it must close by July 1st. Isn’t it has to be done by June 30th?

andys2i June 29

Correct. June 30th is the last day. Thanks for clarifying. However looks closing date will now be extended to September 30th, 2010 per the house bill discussed in the post update.

bushra June 27

this is my first time buyer i have to close hopfully next week would i be qualifies for the credit can you e-mail me please thank you.

joannhubbard June 27

i am real estate owner and broker. with the momentum of the stimulus ending in april 30, 2010, i could have told you (and I am an observer looking into the political world) that the real estate market was going to fall flat on it’s face without extending the stiumulas deadline. something has to be done quickly to help our economy. i am barely keeping my business above water and cannot cover expenses. HELP SMALL BUSINESSES SURVIVE PLEASE!!!!!

Danny Angelo June 25

OF COUSE WE CLOSED ON A HOUSE AFTER THE DEAD LINE………
HOW DOES THIS WORK IF THEY REINSTATE THE TAX CREDIT AND WHO IF ANYBODY WILL CONTACT US
TO LET US KNOW

Trey June 23

The Obama administration has approved five state-designed plans to help homeowners as part of a $1.5 billion effort to assist areas slammed by the housing bust. The Treasury Department said Wednesday that plans for Arizona, California, Florida, Michigan and Nevada had received approval.

The states estimate that the plans are projected to help up to 93,000 homeowners. That’s a small part of the administration’s main existing $75 billion mortgage assistance program, which is widely viewed as a disappointment.

President Barack Obama unveiled the state assistance effort in February. Since then, state agencies have designed their own approaches, largely focused on borrowers who owe more on their properties than their homes are worth or those who have lost their jobs.

Officials say the state efforts could be used to make changes to the administration’s broader mortgage assistance plan. The state agencies are planning to work with local housing groups to put the plans in place

manny June 23

Hello there my wife and i are about to start escrow next week. If this credit gets approved will we still have a chance to take advantage of the credit? I really hope so we are a young couple purchasing our first home and this will really help out alot financially our first year… Thanks hope to hear back for u soon…

andys2i June 23

Unfortunately no. The credit qualification date is still April 30th. The only change proposed is an extension of the closing till Sep 30th.

karen June 23

Question, in order to have qualified was credit of 620 or more required to have been eligible?

andys2i June 23

No. Credit score is not a factor in home buyer credit (thought it will definitely impact your ability in getting a loan).

Katie McOwen June 23

I am a low income, disabled person who for the last 3 years has been sent in circles to obtain a loan which I am eligible for home owner ship. The federal programs would allow me to get a house or build out in the rural area but I would not be able to access public transportation or community inclusion. I finally got somewhere in the past couple years getting the right to use my $98,000 loan to build a 900 sq ft wheelchair accessible house in the city and close to stores and a wheelchair accessible park. I worked with the Rural development office for the past year jumping all the hoops, turned away several times and finally getting things in place, I have a right to stay in the community rather than to be warehoused in an institution. My income fits the guide lines for this loan and I am also eligible for a land trust program so the house will be built on land I rent. I have been working on this for the past 2 years and finally have the contract signed but due to the weather and the Rural Development dragging their feet, I will not be able to get the house finished to acquire the Stimulus payment. This $8000.00 loss means that I will not be able to afford a lift to access this house. $8000.00 means a lot when you only have 98,000 to work with. It would be a no brainer to allow those who have a contract in place to then have 6 months from that date to move in. Even a common construction contract allows 6 months for completion. How can the rules of this Stimulus program be fair to everyone when they set a dead line for contract and then only allow 30 days to turn key?? Dealing with the federal agencies for the loans, city and county inspectors, the weather and the contractors available that will build a small home and especially a non traditional house. This little house for me is “bare-bones” just allowing me to have a roof over my head so I don’t have to live in an institution costing taxpayers thousands of dollars a month to keep me over the period of a life time, I am saving the government and taxpayers millions. Yet in order to get the $8000.00 stimulus I am expected to build this house in 30 days. I the people at the front end of this stimulus program have just been luck to get it not just elligible.

Quan June 21

The government should generate a log now of those individuals who do have a contract in place from April 30, 2010. And only those on the log are allowed the September 30 extension. This will prevent any backdating and fraud.

andys2i June 21

Quan – That may not work, because many people have not yet even claimed the credit via their tax return despite closing before Apr 30th. They are still awaiting final documentation – particularly if a short sale or new home. That’s why the extension is being proposed. About 186,000 home owners and sellers would benefit from the Sep 30 extension according to the NAR.

Quan June 21

andys2i- I’m not about filing the credit on their taxes. If they decide to extend the closing deadline to those who have a signed contract by April 30th, how does anyone know how many people with already signed contracts to extend it to. If there were a database or even a simple list of all the eligible contracts, it could help prevent fraud on possible back-dating. The only document right now is a contract. Those who already have a contract by the April 30th deadline would be placed on a list to be eligible for the September extension. If their name is not on the list, then one could question if it were fraud.

NG June 21

I was under contract on my old house on 4/2/10 and closed it and the new home on 4/30/10. I’d personally much prefer an extention for filing federal income taxes for tax years 2010 through 2049 until 12/31/50, seeing as how I’m currently 65. BTW, the $6500 tax credit did not enter into our buying/selling decision one iota as we’ve been trying to get out of that old house and podunk town for over 2 years. Even though, I have benefitted by this giveaway, I was and am opposed to it as it’s an artificial measure to goose NAR and the homebuilders. The windfall will be spent however on fix-up and a few goodies.

wilted_orchid June 28

You amaze me! You are opposed to this tax credit but still you take it. How typical of the two faced mindset in this country. You didn’t have to file for it you could have stood by your so called convictions. It seems the it doesn’t matter whether you are conservative or liberal you all talk out of both sides of your mouths!!!!!!!!!!!

Anon June 21

David Rosenberg, chief economist at Gluskin Sheff + Associates, wrote this morning:

“We heard from Ivy Zelman (top-rated real estate research) on Friday that the bill that included an extension for the closing date of the homebuyer tax credit fell two votes short of passing in the Senate. This virtually assures that it will not become law prior to the June 30th deadline. Ivy says that while it is difficult to quantify the impact, the fact that as of yet there is no extension, which was widely expected in this bailout nation, it could trigger a jump in cancellations beginning in July if a sizeable number of sales are not closed in time.”

Rosenberg is referring to H.R.4213 the “American Jobs and Closing Tax Loopholes Act of 2010”.

The amendment (S.AMDT.4344) to extend the closing date for the tax credit passed last week on a vote of 60 to 37. The Senate is still debating the other tax extenders, and was unable to obtain cloture (this is what Zelman was referring to). This bill also includes the extension of the date (not duration) of unemployment benefits and other provisions. One of the sticking points is the extension of the COBRA benefit.

William June 21

I just sign a contract on June 10 to buy a first house do I still qualify for the tax credit if I closed by august 5
considering if they pass the tax credit extension?

John June 20

Looks like I’m too late to get this tax credit, which sucks! I was laid off for a year but now I’m about to buy a house. I voted for Obama but I will not vote for him again if I don’t get some of that money.

Tori June 23

People are so stupid and yes I am talking to you. I understand you upset cause you may not get any of that money but what does voting for Obama have to do with anything? The man made the credit available to us and there was dead lines set. Yes I understand your situation cause I have been there and soon my be out of work again but its not Obamas fault you did not meet the deadline so what does you not getting that money have anything to do with voting for him again. People need to realize Obama is not God this man can do only so much and the reason he is having a hard time doing what he say he will do because Congress fights him on everything he tries to do. He will never get anything done based on the way things are no other president had this problem

Rob June 24

Obama sucks. People are stupid and yes I’m talking to you.

wilted_orchid June 28

Unbelievable!!!!!!!! You won’t vote for him if you don’t get some of this money? Your right, we should vote for the president that gives us the best bribes. My gosh that is what’s gotten us into the mess that we are in. Our Presidents, Congressmen and Representatives all taking bribes and I don’t mean just Obama, it’s been going on forever but the last 40 years have just gotten worse and worse. Look at all the relaxed rules for the banks and wall street. They have almost destroyed this country while our leaders on Capitol Hill were too busy lining their own pockets to do anything about it. How many of them lost their homes and life savings? And that’s on both sides of the isle and it started a long time before Obama was elected. I worked with people that thought they would be able to retire and now they don’t see an end in sight. Obama talked the talk but he couldn’t walk the walk and he knew it. Because they all do it and it is called campaign promises. They know that Congress won’t pass the things they promise so they say anything and everything to get elected and we’re fools enough to listen to them. So now we wait until 2012 to see who the best liar is then. Good Luck

Amanda June 19

My husband and I went under contract for a home in Jan 2010 never thinking we would be in June and still waiting to close escrow but since it’s a short sale we still have not. It’s already been 5 months it’s so frustrating to wait and wait. I hope they approve the closing date to September so we can qualify for the credit since we have been waiting soo long. We definately will not close by the 30th:-(

Angie June 19

I think it should be fair for everyone. We looked at houses for over three month and unfortunately kept having investors with cash offers. Finally found a house in May and do not qualify. The credit should apply to everyone or it should have been left alone. I hope they will extended to everyone.

rhonda67 June 17

I have been buying my house contrct for deed since 2009. Every thing is still the the owners name even the realestate tax. My boyfriend (husband since 2006) moved in in Jan 2005. We are now buying a new modular home and placing it on our property and tearing down the old house. We financed the pay off from the Contract and the modular together and got a loan from the bank it is all in my name not his. My husband has never ownd a home and his name was never placed on the contract.

my question is what are we first time homeowners or returning buyers or do we even qualify?

Patti June 24

You are still a first time homebuyer. My husband and I were buying our house on a land contract (rent to own) with no equity in the house until we either paid it in full or financed the purchase price. We lived in the house for 3 years, but we were considered renters so we still qualified. The money we paid to the landowner was used as a downpayment.

RHONDA June 25

Thanks Patty, i have a couple more questions, did your contract require you to provice house/property inusrance and did you have to pay the realeastate tax even though they were still in the home owners name? We had to do both of these and when i filed taxes this year for 2009 i was able to claim 2009 realestate tax on my tax return (even though they were not in my name). I dont know if that will knock me out ? An accountant does my taxes and he does not know either. out contract also reqired us to pay interest which the owner claimed on her taxes.

GeoSOS June 17

I really don’t know where to start in response to the posts I have read on this discussion board. This article was written to share some hope to folks who are buying a home and lucky enough to take advantage of the first time buyer or move up buyer tax credit who are, unfortunately, stuck in piles of paperwork on the thousands of lenders’ desks across the United States. Lenders are understaffed, and it is too late to add new folks into the mix, since training them will take us past the June 30th cutoff date. No one is suggesting an extension of the credit to buyers who didn’t get their contracts in by the April 30th deadline; that ship has sailed. Instead, the government of YOUR elected officials is trying to make sure the tax credit you are looking forward to comes to fruition. As it stands, lenders will not be able to close a great number of loans on time, and this will cause some buyers to walk away from their home purchase, inevitably. Why? Simple. There are more homes on the market today then compared to April 30th, which means they can take more time to find that “perfect home”, not the home they felt rushed to buy just to take advantage of a tax credit. And they are more than likely priced less too. Home sellers affected by the loss of their transaction could be forced to take less of a sales price to move their properties faster, as they too may have contractual obligations to settle on the homes they are buying. What does that do for your property values then? That’s right…it lowers them even more. Does everyone see how this snowballs?

By extending the settlement cutoff date, homebuyers and Lenders will not be under the crunch of rushing to meet deadlines less than 15 days away. Lenders want to close loans – that’s how they make money. They have to follow new rules and regulations filtered down through Fannie Mae and Freddie Mac – over 600 new changes in the last two years! – Which explains why you may be getting asked for additional information over and over again throughout the process. If you are being asked for missing pages of a bank statement, or a W2 from 2008, well, the only one to blame is your Loan Officer – those items were needed at time of application and you have every right to be angry at the person that you (hopefully not the person your Realtor) chose. Lenders need docs that are within 30 days of your settlement date. If you made application in February, and haven’t provided any new documents since that time, consider this a heads up…go get them ready because you will need to submit them.

Finally, let’s not forget that the buying and selling of homes is the single biggest catalyst of moving our economy forward. Sales of homes in your neighborhood brings new children to your schools, new shoppers to your supermarkets and home improvement centers. New customers to your gas stations and convenience stores. Does this mean new jobs? Yes. Does this mean people putting some money away and saving for a rainy day? Sure does. And if your bank sees an increase in deposits though acquiring new customers, what does that do to the interest you earn on YOUR money?

And who knows? They could tell a friend about how great the neighborhood is that they just moved to, and maybe you can sell them your home…at a profit!

1957Chevy June 17

My problem with the housing tax credits is that I truly think tax credits will become the standard norm in the sale of real estate, ie: auto industry rebates. Automotive companies are now in a position where cars and trucks will not sale without the rebates.

I graduated from college in 1973 making $7,500 a year. In 1978, I was making $15,300 a year and purchased a 10 year old home (not a new one) for $48,800 and I paid $15,000 down that I had saved from 1973 to 1978.

We now have people who feel they are entitled to everything and they do not think they should have to make sacrifices in order to purchase a home. Minimum down payments should be 5% plus closing costs. We now have a glut of homes on the market due to an over built inventory because loans were made to people you did not have to document they could afford them nor make a down payment. We had and still do have homeowners who are actually renters with a deed because they were given 100% loans. Why do these people walk away from their contractual obligation? They have only paid monthly rent payments and really lose very little or nothing since a down payment was not made.

The problems with FNMA and FHLMC mortgage backed securities were not the securities themselves but the poorly underwritten and ridiculous loans that make up these securities. A well underwritten loan can go bad but a bad loan is always a bad loan!!!

We are on the path that Greece is in now and I do not see anyone in Washington who has a clue or either does not care about physical and financial responsibility!

So much for being a person who lived below my means and saved all my life. The people who have been responsible are getting screwed for doing the right thing all our life!

uhaul June 17

a deadline is a deadline, why the big rush in april when they knew the cut-off was coming. that 8000 sat there available for over a year, as it was it was extended already. my buyer bought my place last year, that whole year sat there for everyone else. meanwhile legitimate details are being bumped to the end of the line because of these late-comers, and in many cases this could be a deal buster.

HP June 16

We bought our first home in Sept 2005, and recently purchased another home (that will be used as our primary residence) April 2010. The first home purchased in 2005 will be used as a rental. If they extend the deadline to now September/October 2010, will we qualify for the “repeat buyer $6500 credit” since I will have five years invested in the first property?

Thanks in advance,
HP

Don Woolery June 15

I have been reading through a lot of these posts an i find that I myself am still confused on this whole situation. i recently purchased a house an we closed on April 12th. My tax accountant told me i could file an ammendment for my previous 2009 tax return an i could recieve my credit that way. is this true? i figured i wouldnt be able to do that…that i would just have to wait till my 2010 return an file then and get the credit. Any help would be great.
thanks
don

andys2i June 15

Yes, you can file an amendment to claim your credit (according to the IRS). You can also wait till 2010 if you feel more comfortable. As outlined in the post, “For qualifying purchases, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. A new version of Form 5405, First-Time Home buyer Credit, is now available on the IRS website. Taxpayers claiming the credit on their 2009 returns, will not be able to file electronically because of the added documentation requirements, but instead will need to file a paper return by using the new version of Form 5405”

Andy June 15

One thing to clarify based on some reader questions: This amendment does not extend the deadline for home buyers to qualify for the tax credit; it extends the deadline for closing the transaction, from June 30 to Sept.30. Since these applications were already in the pipeline and figured into the program’s cost, the extension of the closing deadline should not incur any further government costs.

Roger June 15

As expected, the tax credit artificially inflated the price of new or existing homes by the same $8,000 or $6,500. Now this proposed extension seems designed to protect people who agreed to buy at inflated prices and relied on the tax credit to offset their higher costs. An alternative is to let them out of their contracts so they can reconsider and buy a more reasonable home at readjusted prices.

Let’s get rid of ALL stimulus programs. Artificial stimulus (including tax credits, mortgage interest tax deductions, property tax deductions, federal loan guarantees, artificially low interest, zero percent or low down payments, net operating loss carry back, and construction loan guarantees) causes market failures in a free market society when they favor special interests over competitors and public interests. Who are the real beneficiaries? Aren’t these programs really to benefit big builders, realtors, lenders, Wall Street, and the politicians who get money from them?

andys2i June 15

From the WSJ:

Response times from loan officers and appraisers have doubled over the past month, says Kailee Rainey, who works for a Seattle-based real-estate brokerage.

Lee Barrett, president of Century 21 Barrett, a real-estate firm in Las Vegas, spent part of the week in Washington meeting with his congressional delegation about the need to extend the closing deadline. “The lenders are overwhelmed. The title companies are overwhelmed,” he says. “It’s just a mad surge of everybody trying to close deals.”

At Wells Fargo & Co., employees from other sales divisions are being brought in to handle mortgages, and staffs are working weekends and nights to process higher volumes. “It’s all hands on deck,” says Greg Gwizdz, an executive vice president at Wells Fargo Home Mortgage. He says the bank has prioritized “every customer who qualified for the tax credit.”

A spokeswoman for Bank of America Corp. says the lender is also placing “increased priority” on loan applications submitted before the April 30 deadline. Luke Hayden, president of PHH Mortgage, a lender based in Mount Laurel, N.J., says consumers can help speed the process along by being “very responsive to requests for documentation” from lenders.

andys2i June 14

[Update June 2010] Possible September 2010 Extension to Home Buyer Credit as Builders and Home Owners Struggle to Complete Home Transactions by June 30 2010 Tax Credit Deadline….[Read More Here]

nellie June 14

me and my husband are in contract but they only used him on the actual loan would they just give him the the rebate even though were a married couple? IM ON EVERYTHING ELESE EXCEPT THE LOAN IM WAITING ON A DECISSION FROM DISABILITY DOES THAT MATTER. IM ALSO READING EVERYONE ELESE,S STORIES ITS SCARY TO THINK ABOUT THE WHOLE PROCESS SO WE,LL THINK ONCE ITS ALL OVER ABOUT HOW LONG AND HARD OUR JOURNEY WAS.HOW AND WHEN DO YOU RECIEVE YOUR MONEY?

James June 14

We are first time home buyers. We went under contract before the April 30th deadline hoping to qualify for the tax credit. Due to the length of the loan process, we are not going to be able to close by the June 30 deadline. That really sucks.

Jill June 16

My husband and I went under cotract before April 30th as well. We qualified for our loan but have been waiting (and waiting) on the seller’s lender (we’re buying a short sale). They “say” they’ll try to approve and close by June 30th, but there is never a guarantee. I really hope this credit is extended. If not, we will miss out on it just because of the lender’s delay. Not right.

Allison June 25

My husband and I are in a similar situation…we had our contract in before April 30th, and we even have loan approval, but are still waiting for the underwriters to finish…We were told all along by our lender that we had plenty of time, we were on track to close on the 25th (“so we weren’t part of the rush closer to the 30th”), etc. Unfortunately, I think everything is just really backed up because of the number of buyers attempting to close right now. I understand that it’s not really the underwriter’s fault, I’m sure they’ve been working insane hours to try and get through this.

We didn’t try to buy a home before the extension to April 30, because we knew it would be tough on our finances. We had planned to buy in June or July, anyway, so we would have started looking in April. When the tax credit got extended to the current deadline, we rushed around to find a home (which we like, although we didn’t get a chance to look at all that many), and to get everything into the lenders ASAP. We’re grad students, and our schedules can be hard to manage, but we figured it was worth the $8,000 to mess up our schedules and get the stuff in very early…and now we sit and wait. If we don’t close in time, I’ll be upset at the amount of stress, lost sleep, late/odd hours in the lab, and rushing around town to get to escrow and the lender and the insurance, instead of doing those things at our leisure, because the only reason we did things as quickly as we did was so that we could get the tax credit. Getting the loan approved took longer than “normal”, so I guess we should have seen this latest delay coming… (but there’s still a tiny bit of hope for us. TINY)

lisa g. June 13

my daughter is settling on 6/23 ,2010. they were under conract w/another property that fell thru but found this one & are settling on 23rd. Do they still qualify ?

Pat June 11

I am buliding a new home. I am paying cash for my home as it is being built. I made sure I got the deal with my bulider by the April deadline and my contract says that the bulider will be done on June 30th. Now my bulider is saying that the home will not be finished until July 20th. I wanted to ask you, because I am paying cash for the home as it is being bulit and my bulider has promised that by June 30th the home will be mostly complete, do you think I would qualifiy for the 6,500 credit? I would appreciate your opinion.. Thanks Pat

JOSEPH L RIZZI June 11

Joe, I signed a contract to purchase a house in the beginning of June and hope to closed before
the end of June. Will I be able to received a tax credit if i closed before June 30, 2010. Why would
it make a difference when you sign a contract as long as you closed before June 30, 2010, What
will happen when contracts are signed in April and donot closed om June 30, 2010?

andys2i June 11

The credit actually expired on Apr 30 – that’s why contracts had to be signed up then. the 60 days to June 30th was a grace period to complete settement, inspections etc which can take place after signing the initial contract (contingencies). So you can try and file with the IRS for the credit, but will likely get rejected if you don’t meet the qualification dates or don’t have a good reason for delays.

marlo June 10

I am looking to buy a new home but i want to wait to see if a new tax credit will be available…how soon will we have that info??

andys2i June 11

Your guess is as good as mine. But in my coverage of this credit and it’s various extension’s I don’t it will get extended unless the economy and housing market really tank. Your best bet is to negotiate with your sellers/builders to try for a discount equivalent to the credit, since some prices had been inflated to reflect the $8K credit.

Currently no active bills are in Congress to discuss an extension of the credit, with the focus on the jobs bill instead.

Christina June 9

I heard rumors that there is another credit of some kind for 1st time home buyers other then the $8000.00 one… is it true??

andys2i June 9

Lots of rumors floating around and some places, like Washinton DC, do have seperate housing credit. But the federal $8,000 credit is expiring for civilians at the end of June 30th 2010, and no senate bills or updates from the IRS indicate that it will be further extended. With low interest rates and stabalizing housing market, it is hard to justify more government spending. However, as discussed here, the home buyer credit IS available to military families till June 30, 2011 (an extra year.

bill June 9

Im a home inspector…Everytime they offer this special, business returns to normal. Everytime it ends, its time to change what I do!!! I feel a one time credit of X amount to first time home buyers only. If they qualify should be given… But, to be fair to all… Anyone owning a home now and they have not been given any help or credit at all. Could still be given this same credit… A one time Government helping hand… Hey, we pay enough in taxes…why not… But… DO SOMETHING FAST…THINGS ARE VERY SLOW!!!

Laura Smith June 6

We went under contract May 15, 2019 (just missing April 30), and anticipate to close by the end of June. Do you know if we will still be eligible for credit since we are closing in June?

rose September 14

No.

Victor Demchuk June 6

$8000.00 credit is no longer available.
I heard a rumor that there is further Extension of $8,000 credit or even more after April 30, 2010 but it would be available only next year.
Anyone has more information?

Sunil June 2

Hi, I did sign the contract with my builder in November of 2009. My builder verbally promised to finish it by June 30th but never comitted. Each month he was keep telling me that June 30th is the target. But When I started looking into loan 2 weeks back, I was told by builder that it is not possible (impossible) to finish the house by June 30th. He is telling me now that it is going to be end of July by when he can finish the house. Is there any way to claim the first time home owner credit (this is my first home that I am building)? What are my options?

Thanks,
I appreciate your response.

Sunil

andys2i June 2

Sunil, according to the IRS the criteria to claim the credit is:

– A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
– For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

A Certificate of Occupancy is a document issued by a local government agency or building department certifying a building’s compliance with applicable building codes and other laws, and indicating it to be in a condition suitable for occupancy. Generally, such a certificate is necessary to be able to occupy the structure for everyday use, as well as to be able to sign a contract to sell the space and close on a mortgage for the space.

It complements a building permit—a document that must be filed by the applicant with the local authority before construction to indicate that the proposed construction will adhere to ordinances and codes and laws.

So you need to get the copy of the certificate of occupancy from your local country (your builder may need to provide some certification documents as well). Discuss this with your builder and research your local county/city rules. You may be able to get the certificate before actually moving in if the house is passed fit by the local authorities.

The other option is to just file for the credit and see the IRS response (they may accept slight delays as it is taking them about 8 weeks to process current home buyer credit applications). I would definetly push your builder to at least get the house up to code before June 30.

Sunil June 3

Andy,
Thanks for the response. I did talk with city official. Due to the special circumstances I am in, they are willing to work with me. They said, they will see my house by end of June and if there are no safety violations, they are ready to give temporary certificate of occupancy. My lender is not willing to close with just the temporary certificate of occupancy (they need house 100% complete). Do we have to close the deal or is it ok to just get the Certificate of Occupancy (temporary)?

I greatly appreciate your help.
Thanks,
Sunil

andys2i June 3

Sunil – I would double check this with the IRS. The Certificate of Occupancy (temporary) may be enough proof to claim the credit. If you can’t get a response from the IRS, I would go ahead and submit the documents you have and by the time and if they ask you for more proof of ownership, you should have your other doco. Don’t forget you can also claim this credit in your 2010 tax return filed next year. Also check out the IRS.gov site for their home buyer credit section – may have some specific answers in their 2009 tax publication.

Suzi June 17

Hi! My husband and I are in the same boat you are. I was wondering, did you ever find out if the Temporary Cert. of Occupancy is enough to claim the credit?

Glenn 49 May 30

Any good program that works well for Americans alway disapears , Disable Vietnam Veteran home coming and homeowner dreams; disapeared. (?)

G49

tddenton May 29

Does the home owner tax credit apply if you have done a loan modificaton or for previous homeowner? I don’t understand the home owner tax credit.

Debra Ivey May 27

Due to credit issues, we finally got approved for a loan for our first house. And, of course the credit for first time home buyers expired 3 weeks after we got our credit straight and fixed and found a home and signed a contract. The only great thing to come out of all this headache of not making the deadline is we will close on our house the middle of June 2010. Thank the Lord for all his blessings. Do you know or have you heard if they will be extending the first time home buyers tax credit?

andys2i May 26

Mike – Not as far as I know. Only the primary home qualifies for this credit.

Mike May 25

Is there any type of tax credit for a 2nd home?

Leisa Wideman May 24

How long does it take to get the refund of already being a homeowner for the 6,500 tax credit

andys2i May 24

Normally 6 to 8 weeks.

Bill Gaskin May 24

Check with a professional before you try to buy using this federal tax relief help because if the only reason you are buying is to get his relief you will end up in trouble.

Gordon Bridges May 23

I would note when I will got my Check.

Jeff May 22

How funny, yeah housing is picking up huh? Data suggests… no kidding with that credit and all..well what happened after the credit stopped, nosedive again! What a suprise

audrea l howard May 21

my husband and I have been looking for affordable housing since katrina of 2005, we have finally found a house that is affordable, but the tax credit expired the end of april, is there anythin we can do to take advantage of the 6500 tax credit or can you direct us to someone who can answer this question. thanks

andys2i May 22

Unfortunately the credit has not been extended, but this could change after June 30 if the housing market tanks. Stay tuned for updates. For specific details check out the IRS.gov site or your local accountant.

Scott May 21

I am being forced to relocate for a job, is there any exempton for renting or selling in this case?

Nick May 18

These limitations on the tax credit don’t help the housing market at all.

Jacqueline Bullock May 17

I heard a rumor today that there is a next tax credit of $15,000. Is this true? Is it only for certain states, cities?

andys2i May 17

Hmmm…that’s interesting. I have not heard that rumor but it the housing market faces another downturn then another credit could be possible. Particularly because the housing credit was very effective.

Rick November 5

You voted for this idiot who is now taking this money back, and telling people theres a “glitch” in the system typical democrats

glen June 30

Thanks Andy,
I’m waiting the loan doc. today which has to be done two days ago. It looks like without the extension I’m screwed T.T

Tina August 11

Rhonda – I just wrote this same email to Kathleen who is in our same boat – for now! I suggest you do what I did and join a free website called, “CONGRESS.ORG.” Through this website, I sent an email to Pres. Obama and the elected Senators and Congreesmen that represent us in the area of West Palm Beach, FL we now reside. I even sent an email to EVERY FOXNEWS TV show that I could an email address for about this issue….We all need a VOICE and if you also write to Pres. Obama and your elected representatives in your area by joining CONGRESS.ORG, possibly we can see a change for us married people!

Here’s the link to my letter to Pres. Obama:

http://www.congress.org/congressorg/bio/userletter/?id=3181&letter_id=5601849656

Jason R November 10

Its been a month since I received my letter and my wife still has not received one indicating she owes any amount. I will keep you updated.
Not surprising when dealing with the government

Charles Myers November 10

We have not recieved any letter telling us about the repayment.

Jason R November 29

My wife just received the notice that she now has to begin repayment of her half of the $7500 on the 2010 tax return.
Just in time for the Holidays. Yay!

Merry Christmas All

andys2i November 10

You are responsible for repaying the credit. Per the IRS – http://www.irs.gov/taxtopics/tc611.html – to recapture of credit you need to include the amount in your 2010 tax return. Automated tax software should have this check for you. The taxpayer’s income tax is increased by 6 2/3% of the amount of such credit for each taxable year in the 15-year “recapture period.” The recapture period begins with the second taxable year following the year of purchase for which the credit is taken.

For example, if a taxpayer is allowed a $7,500 first-time homebuyer credit in 2008, the taxpayer must recapture the credit amount by adding $500 (which is 6 2/3% of $7,500) to his income tax liability each year for 15 years, beginning in 2010.

Acceleration of recapture – If a taxpayer disposes of the principal residence for which a first-time homebuyers credit was allowed (or ceases using it as taxpayer’s and spouse’s principal residence) before the end of the 15-year recapture period, the remaining credit repayment amount is added to the income tax liability of the taxpayer for the year of sale or cessation of use.

Exceptions to recapture – In the case of a sale of the principal residence to an unrelated person, the increase in tax due to accelerated recapture is limited to the amount of gain (if any) on such sale. For purposes of calculating gain, the adjusted basis of such residence shall be reduced by the amount of the first-time homebuyer credit allowed, to the extent not previously recaptured. In the case of an involuntary conversion, recapture is not accelerated if a new principal residence is acquired within a 2-year period. No amount is recaptured after the death of the taxpayer.

Dorthy February 15

We received a call from our tax advocate today that our file has been approved and she will call back next week to let us know when we can expect payment. So while I have read some posts that the tax advocate is worthless, in our case she has done a good job.

I’ll also post when we receive.

Ray March 1

Just to let you know, I received my check in the mail yesterday. It took 8 months but I finally got it!!! Now I can pay my oil bill(haha). Take care.

Dorthy March 8

Glad to hear you got your check. I just got a call that our’s will be mailed this friday, Mar 11th, 8 months after we filed as well. that must be the normal process time for those files that need a closer look….

dorthy March 16

Recieved our check in the mail on Monday… took 8 months. This chapter is closed finally. Tax advocate was very helpful in getting our file settled. …

Comments on this entry are closed.

Previous post:

Next post: