Extended and Expanded: The First Time Homeowners Tax Credit

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Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck. The tax credit has been extended to the end April 2010. And this time you do not need to close on a home before the deadline, you just need to have a house in contract. You can close anytime prior to July 1st and qualify for the non-repayment credit. First time homebuyers are anyone that … Read the rest

TaxAct

Extended and Expanded: The First Time Homeowners Tax Credit

If you were looking to purchase a home last year before the First Time Home Owners Tax Credit ran out in November and did not find the home you wanted to purchase, you are in luck. The tax credit has been extended to the end April 2010. And this time you do not need to close on a home before the deadline, you just need to have a house in contract. You can close anytime prior to July 1st and qualify for the non-repayment credit. First time homebuyers are anyone that has not owned a home in the past three years.

And the really good news for those that are not first time home buyers, if you are considered a long time home owner there is a new tax credit for you. The tax credit is part of the First Time Home Owners Tax Credit but applies to home purchasers that have lived in the same home at least 5 of the last 8 years. They are eligible for a $6,500 tax credit towards the purchase of their new home. Not quite the $8,000 the first time buyers are awarded but helpful non-the-less.

For those that do not fall into one of these groups you will need to wait for another extension after the current April 30, 2010 deadline. And there are some income phases out to be concerned with. Single tax filers begin to be phased out of the credit at $125,000 in income and completely at $145,000. For married couples the phase out range is $225,000 to $245,000.

Top Ten Tax Tips for Early January

Top Ten Tax Tips for Early January 2010

The IRS has released their first tax tip of the season with the Top Ten Tax Time Tips. Their tips range from record gathering and filing options to Publication 17 review and contacting the IRS with your questions.

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1. Get your records ready. Start gathering all the records you will need to prepare your tax return when all tax forms have arrived in the mail.

2. Watch the mailbox. Keep your eyes open for tax documents in the mail including mortgage interest and W2s from your employer. Some mortgage companies do not … Read the rest

Top Ten Tax Tips for Early January 2010

The IRS has released their first tax tip of the season with the Top Ten Tax Time Tips. Their tips range from record gathering and filing options to Publication 17 review and contacting the IRS with your questions.

TaxAct

1. Get your records ready. Start gathering all the records you will need to prepare your tax return when all tax forms have arrived in the mail.

2. Watch the mailbox. Keep your eyes open for tax documents in the mail including mortgage interest and W2s from your employer. Some mortgage companies do not send the forms separately but enclose them with your monthly statement.

3. eFile When Complete. File your return electronically when it is prepared. The majority of Americans are now filing their returns electronically and the process is much faster than the traditional method of mailing in a paper return.

4. Free File your Return. Many preparation software solutions have teamed up with the IRS to provide free filing options when your income is below certain levels. If you use TurboTax or TaxAct, try the free Federal version before paying for the service.

5. Consider Free Consultations. Many parts of the country now offer free filing consultations. Check with your local library or your local community center to see if they have experienced help for you tax preparation.

6. Direct Deposit is Faster. You can speed up your refund from the IRS if you have them directly deposit the funds into a bank account instead of sending you a check.

7. Watch IRS.gov. The government website has updates throughout the tax season with great advice when you need your questions answered.

8. Publication 17. This IRS document is the end all when it comes to information about your tax return. Check it for changes to the tax code that will affect your return in 2010.

9. Review your return. Mistakes and missing information are common when you send a return without it reviewing it first. Take your time to consider every part of your return for additional deductions and credits your might be eligible for.

10. Contact the IRS. If you have a question to hesitate to call 1-800-829-1040 toll free.