(Closed) NWR: Tax Question

posted 8 years ago in Money
Post # 3
Member
1890 posts
Buzzing bee
  • Wedding: May 2011

We also got the first time homebuyer’s tax credit, and we already received (and spent) the money.  Do you know why you have to repay it?  We definitely don’t have the money so I hope we don’t have to repay as well!

Post # 5
Member
2239 posts
Buzzing bee
  • Wedding: May 2011

It would probably be better to take out a small loan and pay the irs back rather than do their payment plan unless your credit is not so great and you would have a bad interest rate on the loan. The reason being that even though you might set up a payment plan to repay your taxes, but the IRS will still continue to charge you penalties and interest until it’s paid in full.

Post # 6
Member
4137 posts
Honey bee
  • Wedding: May 2011

what a nightmare! i agree with kate…but what is he contributing?

Post # 8
Member
948 posts
Busy bee
  • Wedding: May 2011

I had to pay taxes last year (about 9K ouch!) and I did a payment plan with IRS (1yr), the interest rate they gave me (3% or so) seemed alot better than taking a personal loan. 

Post # 9
Member
6015 posts
Bee Keeper
  • Wedding: March 2012

Did you talk to someone about the tax issue.  I think you have to repay it if 2 out of the last three years it wasn’t your residence.  Either way I’d don’t know the implications for your credit if you owe money to the IRS vs. repaying a loan.

The tax credit was available to me, I haven’t filed for it, and heard people waiting for 5 or 6mos to get it, so i figured i’d file for it when i filed for my taxes this year.  Thank god I didn’t get it, because i’m selling to move several states away.

good luck and repost if you find out anything.

Post # 11
Member
948 posts
Busy bee
  • Wedding: May 2011

I applied for it when I filed my income taxes.  There’s a portion on there in which if you owe taxes you can request a payment plan.  A few weeks after filling my taxes I received the paperwork in the mail.  I could finish the process by snail mail or the web.  It was pretty painless.  

I would recommend filling your taxes as close to April 15th as possible that way you can save if you believe you’ll have to pay.  What will happen is you’ll fill out your tax paperwork and if you were meant a rebate, you can have it deducted from what you owe in the housing credit, and you’ll be responsible for the remaining balance.  Hopefully by April you have a good amount saved to contribute to whatever balance you have remaining.  You can fill out your tax paperwork way before April 15th, so you know the balance, but don’t mail the paperwork until a week before the 15th or so. 

Hope that helps!

Post # 12
Member
3304 posts
Sugar bee

Set up a payment plan with the IRS- their interest rate is better than a personal loan and they can set you up on eftps.gov to may your payments electronically. However, any refunds you are suppose to get will offset against your bill.

Post # 13
Member
2066 posts
Buzzing bee

If you do your taxes as soon as you can (when you have back all your W2s and 1099s and whatnot), you’ll know how much you will owe sooner.  But don’t actually file until close to April 15, that way you have more time to save.  You can set up a payment plan with the IRS, and their rates are usually much less than getting a private loan.

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