Tax Time...again

[jamesA]

Then instead of paying that money to the govt, have a small portion of your paycheck direct deposited into a savings account instead.

Not worth it, besides I have no direct deposit options. I try to save money for a rainy day, and that rainy day comes with tempuratures hitting -34. I can only stretch my money so far right now.

 

[reckedracing]

I'm in a weird situation on this. My W4 is about right I believe, because I'm only getting back $4 on state, but I'm getting back about $3800 fed. Does W4 withholdings effect your state withonldings?

w4 affects both federal and state
you probably filed your w4 with single 1
and then you get head of household and probably the earned income credit or something along those lines which boosts your refund

 

[nootrac22]

I claim single 3, and it's dead on for state ($4 refund), but the fed return is about $3800 I do get to itemise (mortgage intrest), the child tax credit, student loan intrest, child care expenses and the 401k contributions lower my AGI. I wish I could find a way to knock off another $5k of AGI so I could get the earned income credit.

 

[nootrac22]

just a note for anyone claiming the "first time home buyers tax credit this year". It's not a credit, it's more of a loan. I will increase your tax burden over the next 15 years. $7500 is the max you can claim (10% purchase price max out at $7500). So if you claim the full $7500 your tax liability will be increased by $500 over the next 15 years (7500/15 = 500)

Recapture of credit
If a first-time homebuyer credit is allowed to a taxpayer, 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 a 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.

 

[Briansol]

yeah, i would avoid taking it IMO.

granted, an interest free loan sounds nice... but they wouldn't give it to you if it wasn't in their best interest. Bankers are NOTyour friends.

 

[reckedracing]

yea, that "credit" certainly is interesting
haven't really figured out the angle
maybe to encourage people to buy a house to try to slow the housing collapse

 

[nootrac22]

well the $500/year should be more then covered by the mortgage intrest write off.

 

[totalburnout]

well the $500/year should be more then covered by the mortgage intrest write off.

Time value of money.

The money is worth more NOW than over the next five years.

The credit is in place to serve as stimulus for the slowing housing market.

No loan, no tricks, no hang ups.

 

[Jeremy10188]

Turbo Tax myself, im hoping to get about $2,500 back. Not too many plans on what im going to do with the money yet though.

 

[get_nick]

turbo tax blows right now. i can't finish my fucking return. i think they have shit for servers and are getting bogged down.

 

[Jeremy10188]

Really? I was planning on doing them Saturday, since all my student loan papers just came in. I will definatly keep what you said about turbo tax in mind. Thanks

 

[get_nick]

just do it at low traffic times. say between 10pm and 6am. you'll be fine. i think friday is the cutoff for payment. i think they only process them once a week.

 

[Jeremy10188]

Again, thank you so much for the advice!

 

[get_nick]

as far as return, you should be able to get 50-75% of what you paid back. if you do it right. just be careful not to put crazy stuff on there, you have a chance of getting audited. if you do a 1040 ex, you should be pretty safe.

 

[reckedracing]

the IRS has drain times
i can send a return and its accepted usually within 1-2 days, this time of year
any return transmitted and accepted by feb 5th 11 am will get the direct deposit sent feb 13th

i actually got my direct deposit 2 days earlier that scheduled by the irs

 

[chestercheeto48]

So I missed the first time home buyers credit because I bought my house a month and 8 days too early. That sucks. I could have used that money for a sweet deck on the back of my house and to pay off the furniture we bought.

 

[BigJ]

hmmm.... Just got my student payments and other interests in my "favor" that I can assess besides my lack of income. I'm wondering if its worth filing for me.

 

[reckedracing]

So I missed the first time home buyers credit because I bought my house a month and 8 days too early. That sucks. I could have used that money for a sweet deck on the back of my house and to pay off the furniture we bought.

dates can be a grey area if you're feeling lucky
unless you bought the house in a different year

 

[corvetteguy78]

Just filed mine solo style, 4215 from the fed, 777 from the state...woot woot

 

[chestercheeto48]

dates can be a grey area if you're feeling lucky
unless you bought the house in a different year

closed 2/29/08 - grey enough?