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Posts Tagged TAX CREDITS

Energy Tax Credits – Revisited for 2010

Jun 25

Posted by Teri in ENERGY CREDIT, SAVING MONEY!, TAX CREDITS, TAXES

So, you took the $1,500 credit in 2009? Are you eligible in 2010. In a word, “no” — but there is one exception.

$1,500 is the maximum you can claim for all of the efficiency measures combined over the two-year 2009-2010 period; you can purchase up to $5,000 worth of products over the two years and get 30% or $1,500 as a tax credit. If you get the full $1,500 tax credit in 2009, you are not eligible for a tax credit on these products in 2010.

The credits for products subject to the $1,500 limit are only available for primary existing residences and only through 2010. The maximum does not apply to geothermal heat pumps, solar energy systems, wind energy systems, and fuel cells, which have no upper limit and are “products eligible for tax credits through 2016.” You can receive both the tax credit capped at $1,500 AND the tax credit for products with no upper limit. Visit Energy Star’s FAQs for more information on tax credit amounts.

The credits are nonrefundable; that is, the credits are only available to the extent you have a tax liability. For 2010, the credits for home energy improvement products eligible through 2010 may be limited if you are subject to the Alternative Minimum Tax (AMT).

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Tax Credit Extension – Not Just for First Time Homebuyers!

Nov 14

Posted by Hannah in HOUSING ASSISTANCE, TAX CREDITS, TAXES

Since the home buyers’ credit began, 1.4 million home buyers have taken advantage of it to earn up to $8,000 when buying a home!  This success has caused the government to extend the credit until April 30, 2010.

Home BuyersWhat does it all mean?

The new guidelines will be extended to:

  • Home owners that have owned their current home for at least 5 years are now eligible for the credit up to $6,500.
  • Further, first-time home buyers remain eligible for up to $8,000 or 10% of the cost
    of the home.
  • First-time home buyers…


    First-Time Homebuyer Tax CreditThe extension of the credit is available for homes that are under agreement by April 30, 2010 and completely purchased/settled by June 30, 2010. The new regulations for this credit have a higher income limit as well, set at $125,000 for individuals and $225,000 for married couples. The credit will remain at 10% of the cost, with a maximum of $8,000. To receive these benefits, you — and if you’re married, your spouse — must be first-time home buyers, meaning that you have not owned a home in the previous 3 years. Further, unlike the tax credit of 2007/2008, this does not need to be paid back!

Repeat home buyers…
Current home owners that are looking to purchase a new home are eligible for the credit as well! To qualify as a repeat home buyer, you must have owned and lived in your current residence for 5 consecutive years. Now these home buyers can receive a credit for up to $6,500 or 10% of the cost of the home. The new home does not have to be more or less expensive than your current home. The same income limits apply as for first time home buyers.

The fine print..The fine print.. For both credits,

  • The homes purchased must be less than $800,000.Home Buyer Tax Credit
  • The credit is refundable, meaning it will be issued as a check to you if your tax liability is less than the refund.
  • The new extension cannot be applied retroactively; for example, it cannot be used if a home was purchased before November 6, 2009 and the owners did not receive the credit because of the old income limits.

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Are you eligible for the “First Time Homebuyer Credit” of $7500? 2008 Credit! Must be paid back!

Feb 11

Posted by Teri in HOUSING ASSISTANCE, TAX CREDITS

You do not need to be a first time homebuyer to be eligible for this $7500 credit, which is actually an interest free loan from the government for 15 years (Yes, you do have to pay it back over 15 years!).  The term first time homebuyer is a misnomer. Actually, according to the New York Times:

a  “first-time homebuyer” 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.

Homeowners who qualify are eligible for 10% of the purchase price of their home up to a maximum of $7500,

The credit is available to joint filers with modified adjusted gross income below $150,000; it phases out once income exceeds $170,000. For single filers, the numbers are $75,000 and $95,000.

More tax tips will be coming this season to ensure you pay as little as you are legally entitled to. With over 50,000 pages of tax code around, our jobs as preparers is to boil it all down and make sense of the numbers for you!

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