Tax Day!!!

It is April 15th and a day that many people are hoping to forget about because they owe the government money. If you were a first time homebuyer, or had not owned a home in three years and purchased a home during 2008 then you may be eligible for a tax rebate. If you qualify then you may not have to pay and money to the government this year. Even if you did not purchase a home until 2009 you may still not have to pay! This could be great news for a lot of you out there.

If you have filed your 2008 tax return and forgot about this rebate – DO NOT WORRY – you can file and amended return and receive your rebate.

If you just purchased a home is 2009 and want to get you tax credit now – YOU CAN – check out http://www.irs.gov/newsroom/article/0,,id=205416,00.html for more details on how to do this.

The bottom line is if you qualify for the first time homebuyer tax credit there is no reason you should be paying taxes this year, well at least you should be paying a lot less in taxes this year.

Here is how the tax rebate works - For the 2008 Plan

1. If you made $75,000 or less as an individual and $150,000 or less as a married couple in 2008 then you can claim 10% of the purchase price of your home or $7,500 whichever is less. ***The house must be a primary residence.

2. So you purchased a $200,000 home in 2008 and you meet the income requirement. You can claim 10% of the purchase price of the home which is $20,000 or $7,500 – whichever is less. So you can claim $7,500.

3. So lets say in 2008 your tax situation is:
Tax Liability = $6,000
Taxes Withheld= -$5,000
Tax Credit= -$7,500
Tax Refund= $6,500

4. The above example shows that even if you only paid $5,000 in taxes during 2008 you can still get back $6,500! So you can have the IRS give you money this year. Go get it!

5. If you do decide to tax this tax refund – it is a loan. You have to pay back this $7,500 over the next 15 years – interest free. Your tax liability will be increased every year by $500. This is a great loan, but still a loan – not free money.

For more info - http://turbotax.intuit.com/support/kb/tax-content/tax-tips/6360.html

For the 2009 Plan:

The 2009 plan is much better than the 2008 plan because you do not have to pay back the tax break. And for those of you who purchased a home already in 2009 and were either a first time homebuyer or have not owned a home in 3 years or more then you can file for the $8,000 tax break on your 2008 taxes. Most people will qualify, but make sure you read the rest of the qualifications before you get too excited. Check out http://www.irs.gov/ for more info on the qualifications.

Already filed your 2008 taxes? No need to worry. You can file an amended tax return and receive your hard earned money back. Like I said earlier in the article check out http://www.irs.gov/newsroom/article/0,,id=205416,00.html for more info on filing your taxes.

So get out there and get your tax rebates if you qualify.

Check out http://www.thebriteway.com/.

Have a great Day!