Comments on: Will the irs take money owed to them out of the first time homebuyer tax credit? http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/ Wed, 17 Aug 2011 05:23:38 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: chatsplas http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1990 chatsplas Tue, 24 Nov 2009 09:03:02 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1990 OF COURSE the IRS will take out the money you owe them and send you the rest, if any. You MUST attach a 5405 plus the HUD-1 to your return and the processing is taking 12-18 weeks as each must be verified. OF COURSE the IRS will take out the money you owe them and send you the rest, if any.
You MUST attach a 5405 plus the HUD-1 to your return and the processing is taking 12-18 weeks as each must be verified.

]]> By: tro http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1989 tro Sun, 22 Nov 2009 20:57:24 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1989 the form is 5405 and IRS has found a mountain of fraud in the FTHB credit if you owe back taxes, more than likely it will be satisfied first and any left over applied to you FTHB credit filing in 2008 was $7500 and in essence a loan that had to be repaid, filing in 2009 is a true credit of $8000, or depending on your income the form is 5405
and IRS has found a mountain of fraud in the FTHB credit
if you owe back taxes, more than likely it will be satisfied first and any left over applied to you FTHB credit
filing in 2008 was $7500 and in essence a loan that had to be repaid, filing in 2009 is a true credit of $8000, or depending on your income

]]> By: shoredude2 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1988 shoredude2 Sat, 21 Nov 2009 21:32:24 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1988 Not only will they hold any money owed for taxes, they will withhold money for student loan payments and back child support. Not only will they hold any money owed for taxes, they will withhold money for student loan payments and back child support.

]]> By: Doctor Deth http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1987 Doctor Deth Sat, 21 Nov 2009 16:03:30 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1987 if you are getting $8000, why do care if the IRS takes money you owe them? - you should be happy - at least they won't be garnishing your wages to get it back if you are getting $8000, why do care if the IRS takes money you owe them? – you should be happy – at least they won’t be garnishing your wages to get it back

]]> By: SmartA$$ http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1986 SmartA$$ Thu, 19 Nov 2009 09:09:49 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1986 Imagine if you lent me $3,000 on the promise that I would pay you back by April 15th. Its now October, I haven't paid you, and you decide to buy a car from me for a price of $8,000. How much cash are you going to give me? Is there any way in the world you're going to pay me $8,000 while I owe you $3,000 that is overdue?? I doubt it. The only logic thing would be to pay me $5,000 and call it even for the debt (assuming you're nice enough to not charge interest and penalties). The IRS will do the only reasonable thing and use the money toward the debt first. You'll only get a refund of what's left, if anything. The good news is that this will take care of your debt or knock $8,000 off of it. Imagine if you lent me $3,000 on the promise that I would pay you back by April 15th. Its now October, I haven’t paid you, and you decide to buy a car from me for a price of $8,000.

How much cash are you going to give me? Is there any way in the world you’re going to pay me $8,000 while I owe you $3,000 that is overdue?? I doubt it. The only logic thing would be to pay me $5,000 and call it even for the debt (assuming you’re nice enough to not charge interest and penalties).

The IRS will do the only reasonable thing and use the money toward the debt first. You’ll only get a refund of what’s left, if anything. The good news is that this will take care of your debt or knock $8,000 off of it.

]]> By: Bash Limpbutt's Oozing Cyst© http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1985 Bash Limpbutt's Oozing Cyst© Wed, 18 Nov 2009 14:46:49 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1985 Of course they will. The IRS will ALWAYS offset any refunds for outstanding tax debts. There are a couple of ways that you can deal with such situations but you would need to start early in the tax year to do so. It's way too late now to manage your tax liability for 2009, other than maybe to stop all tax withholding on your wages and wait until you file your 2009 return to claim the credit. That might get you a few dollars at this point but unless your income is very high -- and it would have to be well over the cutoff limit for the credit for this to work this late in the year -- there's no way that you're going to get $8,000 out of it. The Form 5405 will be attached to a Form 1040-X. The 1040-X is the actual amended return. Normal processing time is around 16 to 18 weeks. You can often knock that by a week or two if you attach a copy of the HUD-1 settlement sheet to the package. Of course they will. The IRS will ALWAYS offset any refunds for outstanding tax debts. There are a couple of ways that you can deal with such situations but you would need to start early in the tax year to do so. It’s way too late now to manage your tax liability for 2009, other than maybe to stop all tax withholding on your wages and wait until you file your 2009 return to claim the credit. That might get you a few dollars at this point but unless your income is very high — and it would have to be well over the cutoff limit for the credit for this to work this late in the year — there’s no way that you’re going to get $8,000 out of it.

The Form 5405 will be attached to a Form 1040-X. The 1040-X is the actual amended return.

Normal processing time is around 16 to 18 weeks. You can often knock that by a week or two if you attach a copy of the HUD-1 settlement sheet to the package.

]]> By: Judy http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1984 Judy Mon, 16 Nov 2009 10:57:31 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1984 If you owe them money, it will be taken out of any refund including the first time homebuyer credit. If you owe them money, it will be taken out of any refund including the first time homebuyer credit.

]]> By: Pete N http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1983 Pete N Mon, 16 Nov 2009 04:45:50 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1983 Yes- if there is an overall liability the credit will be used to offset it, just like any other credit. Also you don't attach anything to the form (I think you mean form 5405) at the time of filing but you should retain the evidence to support your claim (e.g. closing statement) in case the IRS audits your return. Yes- if there is an overall liability the credit will be used to offset it, just like any other credit.

Also you don’t attach anything to the form (I think you mean form 5405) at the time of filing but you should retain the evidence to support your claim (e.g. closing statement) in case the IRS audits your return.

]]> By: spalmer http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/comment-page-1/#comment-1982 spalmer Sun, 15 Nov 2009 19:49:42 +0000 http://raiseyourcreditnow.com/will-the-irs-take-money-owed-to-them-out-of-the-first-time-homebuyer-tax-credit/#comment-1982 Well yes they are going to take any money you owe to them out of the credit... it's like any other refund. Well yes they are going to take any money you owe to them out of the credit… it’s like any other refund.

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