Friday, July 2nd, 2010

How does the $8000 first time home buyer tax credit work for someone who didn’t owe anything on taxes?

tax credit
Sarah P asked:


I am in the process of buying my first home, and I am wondering how the $8000 tax credit will help me if at all. I have never owed anything on my taxes, I have always got a refund. Someone told me that if you didn’t owe anything on your taxes that you would actually get a check for $8000 but I am very skeptical. Has anyone out there been in this situation?

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5 Responses to “How does the $8000 first time home buyer tax credit work for someone who didn’t owe anything on taxes?”

Wayne Z Says:
July 3rd, 2010 at 1:00 am

Yes, the $8000 is in addition to any other refund that you would normally receive.

David Z Says:
July 4th, 2010 at 12:06 pm

you will still receive the $8,000 even if you paid no taxes.

This is a refundable tax credit.

Please note you will get 10% of purchase price or $8,000, whichever is less.

Steve D Says:
July 6th, 2010 at 10:16 am

The tax credit is just that – a fully refundable tax credit. For example, if at the end of the year, you owed $1,000 in unpaid taxes, you would get a check from the IRS for $7,000 If you overpaid your taxes by $1,000, you would get $9,000 back (the normal $1,000 for overpayment plus the $8,000 tax credit).

Judy Says:
July 7th, 2010 at 1:24 am

It’s what’s called a refundable credit, which means they send you a check for it if you don’t owe any tax. It’s 10% of the purchase price of the house, up to a maximum credit of $8000.

acmeraven Says:
July 10th, 2010 at 12:36 pm

Go to IRS.GOV and use free forms to get a 1040X form and a form 5405 for the 8K credit. Fill both out and send to the IRS. In six to eight weeks you will receive a check for 8K. Simple as that.

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