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Question of the Year

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davew128

Senior Member
Got on email asking me this: "How much will the $8,000 refundable first time home buyer credit reduce my taxes?"

Answer: $8,000
 


FlyingRon

Senior Member
Its a refundable credit.....
Which to be clear means you can get that money even if you don't have that much tax liability.

The things that COULD limit it would be high AGI in the filer or the fact that the property price is less than $80,000.
 

tranquility

Senior Member
How much will the $8,000 refundable first time home buyer credit reduce my taxes?
Taxes cannot be *reduced* more than what they are. So, if you owe $4,000, the $8,000 refundable credit will *reduce* your taxes $4,000. Then, you get the rest of the credit in a check.

Word games davew128.
 
Last edited:

LdiJ

Senior Member
Some people take themselves WAY too seriously.
Aw come on dave...people ought to understand (or be taught) the difference on something that basic.;)

Otherwise, they might just zero out their tax and not give themselves the refundable portion of the credit...which I have SEEN happen...LOL.
 

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