Category Archives: Credits

More on First-Time Homebuyer Credit Documentation

The IRS has provided additional clarification regarding documentation requirements on the First-Time Homebuyer Credit. The IRS encourages buyers seeking the homebuyer credit to sign the settlement statement when they file their tax return — even in cases where the settlement form does not include a signature line.

Ask TaxMama Issue 540 – A Long Weekend

Dear Family, This week went by so quickly, I didn’t even have time to blink. Perhaps not so for some people. Working on an article, I called the IRS DC press office one morning, only to get the answering service message that the office was closed. So contacted a couple of those cool guys by […]

Line C Form 5405

Today TaxMama hears from Seth in the TaxQuips forum, with this question. “The instructions for line C in Part 1 of Form 5405 (Rev. December 2009) are confusing to me. It states “If the date purchased is after April 30, 2010, and before July 1, 2010, did you enter into a binding contract before May […]

Computers for College

Today TaxMama hears from Linda in Kentucky with a reasonable question. “My son-in-law had on-line college classes that required him to have internet services and a computer. Do these count towards the tax credits? Also, how would he go about getting the books, supplies, gas, etc. credited?” Dear Linda, In a very odd and inconsistent […]

Do I have to File a Tax Return?

    Courtesy of IRS [TaxMama note: ALWAYS file tax return, whether you need to or not. Once you file, you start the clock ticking on the 3 year statute of limitations for audit. If you never file, IRS or the state can come back and ask for a tax return for  that year, forever.] You […]

IRA for Home

Today TaxMama hears from Matthew in California who begs leave…  “I withdrew money from my IRA for a first time home purchase.  The amount was over $10,000, the lifetime maximum. Can any of the portion over the $10k mark be attached to my wife’s name?  In effect, could we get a $20K early withdrawal penalty exemption […]

Getting Credit

Today TaxMama hears from Maxine in Florida, who has two quick questions. “Can someone living on Supplemental Security Income receive an Earned Income Credit if she has one dependent? Can someone who is retired received the existing homebuyer tax credit $6,500?”

Veteran and EITC

Today TaxMama hears from Kathy in New Mexico who says. “My husband has his full VA disability and Social Security disability. I do not work. Are we entitled to the earned income tax credit (EITC)? We do not file taxes. Are we entitled to file for the last stimulus check, or is to late?”