…after reading this, feel free to read the Top 5 Questions First Time Home Buyers Must Know!
One of the provisions of the recent housing rescue bill that was signed by President Bush is a tax credit for first time home buyers that purchase a home between April 9, 2008 and before July 1, 2009.
First Time Home Buyer Tax Credit at a Glance in Wisconsin:
- The tax credit is available for first time home buyers only.
- The maximum credit amount is $7,500.
- The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
- Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
Here is a very popular question that most people are asking:
Q: I heard that the tax credit is refundable. What does that mean?
A: The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).
Whether yourself or someone you know is looking to buy their first home, let them know about the tax credit that is available.
Also, here is a good website for more questions and answers about this credit.
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hi Joshua, thank you very much for your post. i like it.