Inmates Cashing In On Home Buyer’s Tax Credits

13. March 2010 · Write a comment · Categories: General Tax · Tags: , , , ,

While the past year saw many potential home buyers struggling to find homes quickly enough to take advantage of the home buyer’s tax credit that was put in place last year, apparently not all of the people who attained these tax credits should actually have received them after all.

Included in the over 14 thousand fraudulent claims that the Treasury Department has discovered are over 9 million dollars in claims that have been handed out to almost 1,300 prison inmates who were incarcerated at the time of their claims.

The Treasury Department reassures taxpayers that only about 0.5% of home buyer’s credits claimed have been discovered to be fraudulent, whereas the majority of claims are from valid qualifying home buyers.

With the change in the home buyer’s credit from a ,500 interest-free loan into an ,000 tax credit, the opportunity for fraudsters to cash in developed. Unfortunately, a variety of people across the nation saw this as an easy way to make ,000.

The Treasury Department’s reports on the frauds that have been discovered related to the home buyer’s tax credit show that not just inmates have been hard at work trying to defraud the government out of funds; a variety of other people have also submitted claims without buying homes, sometimes with multiple people claiming to have all bought the same home or using home sales that happened outside of the time frame that the tax credit was active for. The estimated numbers of people who received money for homes that were bought before the new home buyer’s tax credit went into effect is over 2,500 while there is also an estimated 10,000+ people who have fraudulently received tax credits for homes that were also claimed by other home buyers.

Even with the unfortunate occurrences of fraudulent claims for the home buyer’s tax credit, the fact is that this stimulus has helped to offset the plummeting housing market that the nation has suffered during the current recession. The National Association of Realtors claims that it has, in fact, been instrumental in that process, generating over a million new home sales that home owners would have been unable or unwilling to engage in otherwise. Hopefully critics will remember that any process designed to provide assistance to struggling Americans is liable to attract fraudulent claims and this program has allowed a very small fraction of fraudulent claims to go through, which the IRS is working hard to correct now.

Summer Daycare May Qualify for Tax Credit

11. March 2010 · Write a comment · Categories: General Tax · Tags: , , ,

Did you know that your summer day care expenses may qualify for an income tax credit?  Many tax preparers overlook summer day care expenses when completing tax returns for their clients, missing valuable tax credits.  Many parents who work or are looking for work have no choice but to arrange for care of their children under 13 years of age during the school vacation. Fortunately those expenses may help you get a credit on next year’s tax return.

Here are five facts that you should know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year.

The cost of day camp may count as an expense towards the child and dependent care credit.
Expenses for overnight camps do not qualify. Only day care expenses qualify for the tax credit.
If your childcare provider is a sitter at your home or a daycare facility outside the home, you’ll get some tax benefit if you qualify for the credit.
The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income.
You may use up to ,000 of the unreimbursed expenses paid in a year for one qualifying individual or ,000 for two or more qualifying individuals to figure the credit.

As always, the actual tax credit will depend on your specific financial circumstances.  If you would like to learn more, visit us at www.non-profitconnection.org.

More Tax Credit Articles

A Carbon Tax for France

09. March 2010 · Write a comment · Categories: General Tax · Tags: ,

Who will pay the tax?

The tax (called Contribution Climat-Energie) will be paid by all households and by companies who consume oil, gas and coal.

The tax will not be applied on electricity as less than 10% of electricity generation is coal powered, and the government argues there are European regulations in place.

Neither will the tax be paid by large industrial companies, as they are also covered by European wide regulations on the reduction in CO² emissions.

When will it come into operation?

The tax is planned to come into operation on 1st January 2010.

What is the rate of the tax?

The tax has been set at the rate of €17 per ton of CO² emitted, a rate half of that proposed by the committee set up by President Sarkozy to provide recommendations on the introduction of the tax.

This will mean an increase of approximately 4.5 centimes in the price of a litre of diesel and 4 centimes on a litre of petrol. Gas prices will rise by 0.4 centimes per kWh of consumption.

It is estimated it will cost each household an average of €72 per year in 2010. In practice the impact will vary significantly betweeen households, with some households likely to be paying €200 a year or more in tax, while the impact is likely to be marginal on others eg city dwellers with low carbon use.

The government have made it clear that the rate has been set lower than they would have wished, in order not to impact adversely on household budgets during a difficult economic period. It is likely the tax will be revised upwards each year as many consider the tax has been set too low to have any material impact.

What will the tax be used for?

The tax will be used to try and change the behaviour of households and companies in their consumption of fossil fuels.

The government have stated that it is not their aim to increase the total level of taxes paid by households and companies, so other taxes will be reduced.

On this basis they state the new tax will be a transfer of taxation, not an overall increase in the amount of tax collected by the government. In practice, there are bound to be both ‘winners’ and ‘losers’ as the compensation will be a fixed sum per household.

How will households be compensated?

All households will receive either a reduction in the level of income tax they pay each year, or a tax credit (chèque vert) if they do not pay tax.

The amount of the tax rebate or credit will depend on the size of the household and where they live. Those served by good public transport links will get less than those where public transport services are less available.

Broadly speaking, therefore, those in rural areas with limited access to public transport will receive a larger sum than those in urban areas.

For those living in an urban area the refund will be around €46 a year per adult, while those in rural areas will get €61. These amounts will be increased by €10 for each additional person in the household.

Thus, a couple with two children living in the countryside will get €142, against €112 were they living in an urban area.

As the compensation payment is a fixed sum, whether you are a ‘winner’ or a ‘loser’ from the introduction of the tax will depend on your own particular circumstances.

The consumer’s organisation CCLV has placed on the Internet an automatic calculator that enables you to work out for yourself just what the impact of the new tax will be on your household. The calculator gives you the tax you will pay, as well as the compensation you will receive.

What compensation will there be for companies ?

The government is proposing to abolish the business rates (taxe professionnelle) in 2010, although this tax is being replaced by a new system of business rates, called the cotisation économique territoriale, the parameters of which have yet to be defined.

If the new system of business rates results in a net reduction in taxation for companies, then it is likely households will have to pay more. We shall say more on this issue in a future Newsletter, when the details are available.

There will also be specific concessions for transport companies, farmers, foresters and fishermen. Farmers and fishermen will receive a rebate of 75% in the first year, with a lower rebate likely in subsequent years.

Other Measures

The tax is one of an array of ‘green’ fiscal measures the government has introduced over the past couple of years. Other measures include tax breaks and grants for energy conservation, and tax breaks and grants for low polluting cars.

Learn more in http://www.french-property.com/news/tax_france/carbon_tax_france/

Related Tax Rebate Articles

New Tax Credit Website Draws A Lot Of Hits

07. March 2010 · Write a comment · Categories: General Tax · Tags: , , ,

The recently launched web site, federalhousingtaxcredit, that was developed for the newly signed tax credit law has brought over 100,000 visitors. This shows that there is a rather strong interest of first time home buyers wanting to take advantage of the temporary incentive. The ,500 tax credit is available for all first time homebuyers who buy a home from April 2008 to July 2009. The tax credit was signed in hopes of encouraging potential first time homebuyers to take advantage of the surplus of available homes and buy now. Many potential first time homebuyers have hesitated as the economy continues to dip; however, now is a buyer’s market and a great time to take advantage of the falling home prices.


According to the National Association of Home Builder’s President Sandy Dunn, in response to the number of hits on the website, “The initial response is encouraging.” She goes on to say, “This could be the trigger that helps move prospective first time buyers off the fence and back into the market. But it won’t last forever.” The tax credit that is drawing so much attention is a part of several provisions that have been enacted into law recently that was meant to get the housing market and the economy back on their feet, so to speak. The attention and number of hits is encouraging but time will tell.


The popular web site offers useful information regarding how the tax credit will work and includes the requirements for eligibility. So far the site has attracted nearly 120,000 hits which work out to nearly 10,000 per day. Details, questions and answers regarding how first time homebuyers can take advantage of the credit is divided into four user friendly sections:


* Tax Credit at a Glance: Providing an overview of just how the credit works this section is valuable to the visitors who are just hearing about the tax credit incentive.


* Frequently Asked Questions: This section offers an easy to understand common questions and answer format and contains basic information regarding the tax credit. This includes the definition of a first time homebuyer, the homes that qualify for the credit, the income limits that will qualify as well as the payback provision and other common questions and concerns.


* The Law’s Other Provisions: This section offers a summary of a number of provisions from the Housing and Economic Recovery Act of 2008 in addition to the tax credit. This section will offer information on how to prevent foreclosures, revive the housing market and how to make the nation’s economy stronger.


* Home Buyer Resources: This section offers links and resources that will make the buying process simpler and smoother for the first time homebuyer.


The efforts of the website and the Act come at a time when the housing market is in crisis and the number of foreclosures is increasing steadily. The crisis casts a shadow of gloom over the economy on the whole and by stimulating the housing industry with relief and incentives there is a hope that will move that shadow away and offer a ray of hope and sunshine.

$1500 Federal Energy Tax Credits Are Easier Than Home Improvement Grants!

05. March 2010 · Write a comment · Categories: General Tax · Tags: , , , , , , , ,

If you’re a homeowner and planning to have some home improvements projects in your house to make it more energy efficient, now is the perfect time to do so! Why? Because there are federal energy tax credits available for consumers who make energy-conscious purchases and home improvements.

Energy tax credits are offered at 30% of the cost up to ,500 in 2009 and 2010 for the following:

•    Windows and doors (exterior windows, skylights, storm windows, exterior doors, storm doors)
•    Roofing (metal roofs and asphalt roofs)
•    Insulation
•    HVAC (heating and air – all types)
•    Water heaters

These tax credits are for existing homes only.

Other homeowner energy tax credits that are available at 30% of the cost with no upper limit are:

•    Geothermal heat pumps
•    Solar panels
•    Solar water heaters
•    Small wind energy systems
•    Fuel cells

The above tax credits on the other hand, are offered for both existing homes and those under construction, until 2016.

Taking advantage of these energy tax credits is so much easier than availing of home improvement grants. For one home improvement grants are not readily accessible to the average homeowner. While free government home improvement grants do exist, there is limited information for these so you’d really need to be patient in your search. And even when you find one where you may qualify for, the application process is lengthy and tedious, and the results depend largely on whether your city or state has the available funding.

But with the federal energy tax credits, the savings you get are as good as a done deal – no applications or proposals needed!

So if you have some home improvement plans in mind anyway, why not go green? Your overall savings is two-fold: you get your energy tax credits, and you save on electricity and heating costs by making your home energy efficient.

If you are looking for a handyman in Edina, MN, be sure to visit the Edina handyman directory to find a contractor who can help you take advantage of these tax credits!

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