$7500 Tax Credit

Jspafford · #1 (**permalink**) 10-20-2008, 12:35 AM

Does anyone know what this involves? If I bought a 100K house, which I did, I purchased it within the alotted time frame. Will I get $7500 back along with my normal tax refund? So say I get $1000 back from overpayment, can I then expect to get $8500 back from the government?

I hope this is how it works. Also, I purchased appliances and furniture for the house and have racked up $10,000 in credit card bills. Would it be stupid to pay those off with this money?

Thanks!

skins_fan · #2 (**permalink**) 10-20-2008, 11:00 PM

Here is a website that should answer all your questions on the rebate.

There are some requirements like being a first time home buyer etc...

Federal Housing Tax Credit for First-Time Home Buyers: Frequently Asked Questions

...and no I don't think it would be stupid to pay off the CC's with the money if you get it.

Jspafford · #3 (**permalink**) 10-20-2008, 11:21 PM

Thanks... I've been there before. It doesn't make sense to me though, it is not real clear on what you get.

I am a first time buyer and I make under the minuimum.

It doesn't say if I actually get cut a check for $7500 PLUS my income tax return, or if they somehow apply the $7500 to what I paid already in taxes for the year to give me a couple hunded dollars more back on my return.

I guess what I am asking is should I be expecting at least $7500 back assuming I don't owe uncle sam anything?

skins_fan · #4 (**permalink**) 10-21-2008, 05:00 PM

Yes you are correct. This is a tax credit not deduction, meaning if you owe no tax you would get a refund of $7,500.

However do note this is a loan from the government not a gift. It has to be paid back over 15 years time or when you sell the home.

Payments don't start until 2 years after you get the loan I believe but then after that you have to pay $500 a year through your tax filing.

Hope that helps.

david007 · #5 (**permalink**) 10-22-2008, 02:54 AM

Yes, he is right. You would get back $7,500.

Quote:

Originally Posted by skins_fan

Yes you are correct. This is a tax credit not deduction, meaning if you owe no tax you would get a refund of $7,500.

However do note this is a loan from the government not a gift. It has to be paid back over 15 years time or when you sell the home.

Payments don't start until 2 years after you get the loan I believe but then after that you have to pay $500 a year through your tax filing.

Hope that helps.

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