8000 tax credit please explain?

From what I understand in the website listed in the source, you do qualify for the $8000 tax credit if you have not owned your own home for the last 3 years. If you have owned your own home in that time period you get a $6500 tax credit.

The credit is counted as an amount already paid towards your tax bill. You say "we get 6000 in taxes to begin with". If by that, you mean you are already going to get a $6000 return before this, then yes, you will now get an additional $8000 added to your refund check. Here is an example:

You have had $10,000 withheld from your pay checks over the year, but you only owe $4000 in taxes. Under normal circumstances you would receive a $6000 refund of the amount you over paid. With the tax credit, however, $8000 is added to the amount you have already had withheld bringing your payments up to $18,000 on your $4000 bill. Now you get a $14,000 refund of the amount you over paid.

So, from what I see in the source website and your question, you get $14,000 back. If you do not know what to do with that much you can always send $4000 to me as a consulting fee. That fee might be tax deductible!!

EDIT: A credit is counted as a payment, a deduction is taken off of your taxable amount. A credit is WAY better than a deduction from your stand point. The tax credit is a credit!

You may have it right if you already know that your possible refund amount is already 6000 and if you do qualify for the 8000 of refundable FTHBTC that would mean a possible refund amount of 14000 once your 1040 tax form is correctly completed.

The FTHBTC credit amount of 8000 is a refundable credit amount and will work in the same way as having payments of taxes credited and if you do qualify for the 8000 amount the amount will added to any other refund amount that you may be due or if you should end up owing some federal income tax some or all of the 8000 FTHTC would be used to reduce that federal income tax liability amount before you would receive your correct refund amount that you qualify to receive.

You will have to use the form 5405 tax form and also attach all of the other necessary documentation that will be required when you do complete your 1040 tax form correctly and completely and have it ready to sign and send to the correct IRS address.

It may be possible to efile the completed tax return for the FTHBTC next year after the end of the year 2010 and when you get all of you income informations forms W-2, 1099, etc from all of your worldwide sources of income that you will have to report on your correctly completed 1040 tax form.

Hope that you find the above enclosed information useful to you in your situation and good luck. Also wishiing you and your husband a happy thanks giving a couple of days ahead of time today is November 23 2010.

uncertain the place you're starting to be your counsel from. in case you qualified for the $8k credit and one or the two one in each and every of you amended your returns to declare it, the processing time is a lot longer than 40 5 days. parent 12 to sixteen weeks or 80 4 to 112 days. you will get carry of the full credit abruptly, no longer $7,500 now and $500 with next year's refund. You declare the credit by using amending your 2008 return or by using waiting until you document your 2009 return next year. when you consider which you seem to have chosen to amend your 2008 return(s) then it won't have any influence on your 2009 tax return in any respect.

the First Time HOme Buyers credit is actually a check in the amount of the credit

there were three available and you would only get one of them

if you qualified for the $8000 credit or the $6500 will depend on the purchase date of your home

you don't get both, you get one

and your income comes into play if your income exceeds the limits within the credit

and the credit is % of the purchase price of the home up to $8000(or $6500)

if you were due a refund of income taxes withheld on your wages, that is a refund of your money, the FTHB credit is separate from that refund

It would appear that you are eligible for the credit. Attach Form 5405 to your return to claim it. See the instructions for Form 5405 here http://www.irs.gov/pub/irs-pdf/i5405.pdf and follow them carefully. You must file a paper return and mail it in. (You could amend your 2009 return but at this late date you'll get your money faster if you file it with your 2010 return even though you'll have to wait a month and a half to do that.)

The credit is fully refundable so it will be added to any refund that you may already be getting. If you're looking at a $6,000 refund without the credit, you'll get $14,000 if you qualify for the full $8,000.